U.S. Dollar Rallies on Higher Yield

The dollar held firm on Tuesday after U.S. bond yields jumped and as the euro came under renewed pressure on persistent worries that Greece may miss debt repayments next month.

The dollar gained about one percent against a basket of six major currencies on Monday. It last stood at 94.132, having bounced back from four-month low of 93.133 hit last Thursday.

The main catalyst for the dollar’s rebound was a rise in U.S. debt yields. The 10-year U.S. Treasuries yield rose to 2.234 percent, erasing declines on Friday following disappointing U.S. data.