The dollar held gains on Thursday, supported by higher Treasury yields after a bigger-than-expected rise in U.S. consumer prices fanned fears about an increase in inflationary pressure.
Traders will now turn their attention to U.S. weekly jobless claims due later on Thursday and retail sales numbers on Friday to determine whether consumer prices will continue to rise.
The greenback is likely to continue to rise as some investors unwind bearish bets on the currency and reposition for more sustained inflation as more countries leave behind the coronavirus pandemic, analysts said.
The dollar bought 109.55 yen, close to its strongest level in five weeks.
Against the euro, the dollar stood at $1.2083, holding onto a 0.6% gain from the previous session. The British pound bought $1.4068.
The dollar also rose to 0.9083 Swiss franc, close to a one-week high.
Benchmark 10-year U.S. Treasury yields rose to a five-week high of 1.7040%, which increases the appeal of holding dollar-denominated assets.
Signs of stronger labor market and increased consumer spending would offer more evidence that inflationary pressure will pick up, which could push yields and the dollar even higher, traders said.
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