By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia, climbing back . High yields supported the U.S. currency ahead of later-inthe-day inflation data, raising expectations for tighter monetary policies.

By 11:47 ET (03:47 GMT), the index that measures the greenback’s value against other currencies had risen 0.13%, to 100.055 (3:47 GMT). It reached a new two-year peak of 100.19, which it had hit the week before.

It grew by 0.06%, to 125.43

The pair increased by 0.09 to 0.7426. It also increased by 0.01 to 0.6825.

It was at 6.3702. Dollar gained overnight due to the Chinese yuan offshore, reaching a 2-week peak of 6.390 early Asian trading.

It fell by 0.04% from 1.3024.

Also, the dollar continued to gain against the yen. The overnight intraday peak was 125.77 while the June 2015 peak was 125.86. Even though Shunichi Suzuki (Japan Finance Minister) declined to speak on Tuesday about specific foreign exchange market prices, he indicated that excess volatility and disorderly movement could negatively affect the economy as well as financial stability.

CBA analysts wrote in a morning note that dollar strength was “most evident against JPY (currencies of countries with a dovish Central Bank)”.

CBA believes that very high U.S. prices will increase Fed expectations of tightening. It expects that the dollar will continue to gain as the 50-basis point rate increase was not priced in yet for the Fed’s next meeting.

“We expect the dollar to stay bid and lift to the pandemic high of 103 pts in the coming months,” said the note.

Investors are now awaiting the U.S., which is due late in the morning.

Longer-term U.S. yields have also been on the rise. The benchmark 10-year note yield reached 2.836%. It was its highest point since December 2018! Also, the yield on the Treasury 30-year bond rose to 2.86 percent. This is its highest level since May 2019.

The euro’s gains were halted on Monday as incumbent French President Emmanuel Macron defeated rival Marine Le Pen during the first round Presidential voting. 10. It was close to Friday’s closing price of $1.087 when the currency exchanged last.

In their note, Rabobank analysts stated that “the bottom line is that we’re where we were prior to the vote.”

After the April runoff, Macron appears set to return to power. He won 24 votes, however the magnitude of his victory seems to be smaller than five years ago when he was seen upstart.

Oil prices have also held back gains in commodity-linked Australian or New Zealand dollars. It will also announce its policy decision Wednesday.