Dollar gains

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    NEW YORK- The US dollar gained as US government bond yields held near one-year highs, while riskier currencies such as the Aussie dollar weakened.

    Yields have surged as an acceleration in the pace of vaccinations globally and optimism over improving global growth bolster bets that inflation will rise. That has also led investors to price in earlier monetary tightening than the Federal Reserve and other central banks have signaled.

    The dollar move is “a function of what’s happening on the yields side,” said Jeremy Stretch, head of G10 FX strategy at CIBC World Markets. The 10-year yield briefly climbed above the S&P 500 dividend yield on Thursday, he noted, indicating “uncertainty that is writ large.”

    The dollar index rose 0.59 percent to 90.847, its highest level in a week.

    It gained against the yen, touching 106.69 for the first time since September.

    The benchmark 10-year Treasury yield surged above 1.6 percent on Thursday for the first time in a year after a weak seven-year note auction. It was last at 1.45 percent.

    US yield increases have accelerated this month as Fed officials refrain from expressing concern about the yield gains.