U.S. Dollar Higher on Rates Outlook

The dollar rose more than 1 percent against other major currencies on Tuesday, extending recent gains largely driven by increasing expectations the Federal Reserve will start raising U.S. interest rates in 2015.

The dollar climbed to its highest in nearly eight years against the Japanese yen and pushed the euro, already weighed down by anxieties over Greece’s financial crisis, below $1.09 for the first time in a month.

The dollar index, composed of six leading currencies traded against the greenback, was last up 1.38 percent at 97.34.  That was the latest in a string of gains since last week, when U.S. core inflation rose unexpectedly and Fed Chair Janet Yellen said a rate hike looked likely before year’s end.