The US dollar recorded a three-month high against its major rivals on Tuesday, after being lifted by a spike in U.S. 10-year Treasury yield toward the psychologically key 3 percent level.
The U.S. 10-year Treasury yield hit its loftiest peak in over four years at 2.998 percent on Monday, driven by worries about the growing supply of government debt and inflationary pressures from rising oil prices.
The rise in Treasury yields has widened U.S.-Japan and U.S.-German yields significantly in the dollar's favour, leaving the yen and the euro lower.
USD/JPY rose 0.1 percent to 108.91. On Monday, the greenback surged nearly 1 percent for its biggest daily percentage rise in almost a month.
EUR/USD slipped almost a quarter percentage point to 1.2183.
