Dollar Rises Versus Yen Amid Higher U.S. Yields, Growth Outlook

The dollar rose to almost a 10-week high versus the yen as speculation that extended U.S. tax cuts will bolster the economy drove Treasury yields higher and boosted demand for assets denominated in the greenback.

The U.S. currency gained against most of its other major counterparts as 10-year Treasury yields surged the most during two days since September 2008 after President Barack Obama late Dec. 6 agreed to extend tax reductions for two years and a payroll-tax cut. New Zealand’s dollar fell to a six-week low versus the Aussie before its central bank left interest rates unchanged.