The dollar climbed to its highest levels in several months against most major currencies on Wednesday after Federal Reserve Chairman Jerome Powell indicated that there may be a need for faster and higher interest rate hikes than previously expected to curb persistent inflation.
The dollar index rose 0.2 percent in Asian trading to its highest level in more than three months at 105.86.
The dollar surpassed its 200-day moving average against the Japanese yen for the first time this year, rising 0.5 percent to a three-month high of 137.79 yen.
Against the euro, the U.S. currency reached its highest level in two months at 1.0528 dollars for the euro, extending Tuesday's jump of 1.2 percent. The British pound, Swedish and Norwegian crowns, the Chinese yuan, and the Canadian, Australian, and New Zealand dollars also fell to their lowest levels in several months against the dollar.
The British pound slipped slightly to 1.1811 dollars, its lowest level since late November.
The Chinese yuan hit its lowest point in over two months at 6.9782 to the dollar, just steps away from the notable seven yuan per dollar level.
The Australian dollar also declined after the Reserve Bank of Australia softened its tone regarding the interest rate path.
