SINGAPORE, June 8 Reuters The dollar was on the back foot on Thursday, though it drew some support from higher U.S. Treasury yields as traders contemplated the possibility of another rate hike by the U.S. Federal Reserve, even if it pauses next week.

Surprise rate increases by the Bank of Canada BoC and the Reserve Bank of Australia RBA this week have caused markets to raise their expectations that global central banks still have further to go in their tightening cycle, while bets of rate cuts later this year have also trimmed.

The BoC on Wednesday hiked its overnight rate to a 22year high of 4.75 after a fourmonth pause, while the RBA on Tuesday similarly raised interest rates by a quarterpoint to an 11year high and warned of more to come.

The Canadian dollar was last marginally higher at C1.3363 to the greenback, after rising to a onemonth top of C1.3321 in the previous session.

Canada39;s central bank is viewed as one of the leaders when it comes to being proactive with monetary policy, said Edward Moya, senior market analyst at OANDA.

The BoC is signaling that more rate hikes could come and that has everyone rethinking that the Fed will be done after the July hike.

Elsewhere, the U.S. dollar dipped slightly in Asia trade, with sterling rising 0.13 to 1.2455, while the euro gained 0.14 to 1.0712.

European Central Bank policymakers had on Wednesday struck a hawkish tone and guided that more rate hikes are on the horizon, with interest rates likely to stay…