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Dollar pushes higher on euro

Foreign exchange traders pushed the US dollar to a 15-week high against the euro, sending US bond yields down to their lowest in nearly one year.

NEW YORK: Foreign exchange traders pushed the US dollar to a 15-week high against the euro on Wednesday, sending US bond yields down to their lowest in nearly one year.

With markets convinced that the European Central Bank will take more steps to shore up the Eurozone economy on June 5, buyers sought out the dollar, sending the euro down to $1.3590.

Yields on the 10-year US Treasury note sank to 2.44 percent, a level last seen in June 2013, down from the 12-month peak of 3.0 percent.

Omer Esiner of Commonwealth Foreign Exchange said that while firm US economic data has supported the greenback, "much of the dollar's improved tone remains the result of disappointing economic news abroad and the resulting sell-off in currencies like the euro and the British pound."

The pound, which tested the $1.69 level just last week, fell to $1.6710 in trade Wednesday.

"The pound suffered in the wake of disappointing data that suggested the nation's red-hot housing market and engine of broader economic recovery may have peaked," said Esiner.

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