The dollar stood at its strongest levels of the year on Wednesday, after rising along with U.S. yields on investor concerns that the Federal Reserve will start to withdraw policy support just as global growth slows.
The euro fell to $1.1657, its lowest since November 2020 and the dollar index rose to an 11-month high of 93.891.
The yen, which is sensitive to U.S. yields as higher rates can draw flows from Japan, touched an 18-month low of 111.685 per dollar , before rebounding a fraction to 111.47.
It showed little reaction to the election of Fumio Kishida as leader of Japan's ruling Liberal Democratic Party (LDP), virtually ensuring he will become the country's next prime minister.
Sterling , which took a beating on Tuesday amid worries over the economic impact of a shortage of gas and a scramble for fuel, extended losses to its lowest since January at $1.3505.
U.S. Treasury yields have surged in recent days as tapering looms before the end of the year and as inflation starts to look stickier than first thought. The benchmark 10-year yield eased on Wednesday but at 1.5132% is still up some 20 basis points in a week.
Meanwhile, energy prices are surging and concerns are mounting about China's growth outlook - now at risk both from a messy collapse of developer China Evergrande and power outages that are hitting output.
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