As the Fed officials talked up the potential for further, aggressive rate hikes, the US dollar remained elevated on Wednesday following its biggest surge in three weeks against major peers.
US Treasury yields rebounded after House Speaker Nancy Pelosi’s arrival in Taiwan was met with a strong, but not overwhelming response from China, as the greenback extended its best gain in six weeks versus the safe-haven yen.
The New Zealand dollar dropped after the unemployment rate rose unexpectedly. The Australian dollar also fell.
Following its slide to a near one-month low at 105.03, the US dollar index, which measures the currency against six major peers, was 0.05% higher at 106.50.
After jumping 1.2% on Tuesday, the dollar gained 0.51% to 133.84 yen. A nearly two-month low of 130.40 had been reached earlier in the day.
Following a 14 basis point surge, benchmark long-term Treasury yields, which the dollar-yen pair tends to track closely, were around 2.75% in Tokyo.
Read more here