SINGAPORE, Sept 27 Reuters The dollar rose to a 10month high against its major peers on Wednesday, toppling the euro and sterling to 6month lows and pushing the yen deeper into intervention territory, as the prospect of higherforlonger U.S. rates gripped markets.

U.S. Treasuries stabilised after a heavy selloff in recent days, though yields remained elevated and kept the greenback solidly bid.

The euro was last 0.14 lower at 1.05575, after slumping to a sixmonth low of 1.05555 earlier in the session. The single currency was on track to lose more than 3 for the quarter, its worst quarterly performance in a year.

Sterling was similarly down 0.09 at 1.2146 after hitting a sixmonth trough of 1.2141 earlier on Wednesday, and was headed for a quarterly loss of more than 4.

The U.S. dollar index meanwhile peaked at a 10month high of 106.30.

The U.S. dollar is stickier to the upside than the downside, said Tina Teng, market analyst at CMC Markets.

It39;s been a shock for markets since last week because the Federal Reserve39;s rhetoric was more hawkish than expected … I think it39;s more likely they would hike rates for one more time.

Fed officials have in recent days flagged the possibility that the central bank would need to raise interest rates further, after it kept rates steady last week but stiffened its hawkish monetary policy stance.

That has sent U.S. Treasury yields scaling multiyear highs in recent days as money markets adjust their expectations of where…