The rise in bond yields is benefiting the greenback, which is recovering from its two-week lows after the Federal Reserve pushed back speculation on interest rate hikes.

10-year U.S. Treasury yields reached their highest levels in 13 months in morning trading in London, topping 1.70% for the first time since January 24, 2020.

The Dollar Index, which measures the greenback against a basket of peers, rose by as much as 0.4% to 91,671, following a two-week low of 91,300 after Wednesday's Fed meeting.
“The question remains whether the Fed can really stop the latest surge in US Treasury yields, especially considering that the improvement in American fundamentals will continue,” said Valentin Marinov, head of G10 FX research at Crédit

The US Central Bank expects the economy to grow by 6.5% this year, which would be the biggest annual jump in gross domestic product since 1984.