Dollar hits new highs on optimism over U.S. pandemic recovery

The dollar hit a new one-year high against the yen and multi-month peaks against peers. This came as traders bet that massive fiscal stimulus and speedy vaccinations will aid the United States in leading a global pandemic recovery.

The dollar index climbed as far as 93.435, its strongest in nearly five months. It rose from a near-90 level at the beginning of March, on course for its best month since 2016.

The dollar hit a new one-year peak of 110.97 yen and marked a near five-month high of $1.1705 against the euro.

The dollar was lifted by a surge in U.S. bond yields, making the currency attractive for many investors.

Data showed U.S. consumer confidence surged this month to its highest since the onset of the pandemic. This supported views that economic growth will speed up in the next few months.

Aussie rose to $0.76025, while the Chinese yuan stood around 6.57 against the dollar offshore.