The dollar held on to fresh highs on Tuesday, pushing the yen down closer to an intervention zone, after strong US economic data bolstered the view that the Federal Reserve will keep interest rates higher for longer.

The dollar index rose around 0.5% to 107.06, at one point hitting as high as 107.12, its highest since November 2022.

The dollar also got a boost from rising US Treasury yields as the upbeat economic news underpinned the higher-for-longer Fed rates views, while the last-minute deal that averted a government shutdown reduced demand for US debt.

The yen was last at 149.80 against the dollar, just off the overnight low of 149.88.

The euro fell to as low as $1.0462 in the Asian morning, the lowest since December last year, after a survey of euro zone PMI showed on Monday that demand kept shrinking at a pace rarely surpassed since the data was first collected in 1997.

Sterling was last at $1.20790, its lowest since March 16, while the Aussie remained mostly flat ahead of a rate decision by the Reserve Bank of Australia later in the day.

Source: Qatar News Agency