The euro, pound and yen all traded at multi-month lows on Tuesday, with the Japanese currency on the brink of weakening past the psychological 150 per dollar level, as surging U.S. Treasury yields kept the dollar firmly on the front foot.

The euro was steady on the day at $1.0477, still around its weakest since early December 2022, after a near-1% plunge on Monday when U.S. manufacturing data came in strong and Federal Reserve officials said monetary policy would need to stay restrictive for "some time".

The combination of that and an agreement to avert a partial U.S. government shutdown sent benchmark Treasury yields to as high as 4.704% in Asian hours on Tuesday, a 16-year peak, in turn driving the dollar higher.

The dollar index, which tracks the unit against six peers, was up a fraction at 107.06, around its highest since November.

The Australian dollar slipped to an 11-month low of $0.6321, down as much as 0.9% following the Reserve Bank of Australia's (RBA) decision to hold rates, while Russia's rouble weakened past the symbolic threshold of 100 to the dollar before recovering slightly in early trade.

The dollar was up 0.36% against the Swiss franc at 0.9215, near the dollar's near six-month high on the franc hit last week.

Source : Reuters