SINGAPORE, Oct 25 Reuters The dollar drew support on Wednesday from a survey showing U.S. business pulling out of a five month contraction, while the Australian dollar strengthened on the likelihood of interest rate hikes after a surprisingly strong inflation print.

The dollar index , which measures the greenback against a basket of six peers, was steady at 106.17, rebounding from a onemonth low of 105.35 struck during the previous session.

SP Global on Tuesday said its flash U.S. Composite Purchasing Managers Index, tracking both the manufacturing and service sectors, rose to its highest level since July, potentially giving the U.S. Federal Reserve more room to keep interest rates high.

The buoyant dollar kept the yen pinned near the closely watched 150 threshold, with the Japanese currency last at 149.84 per dollar, having mostly traded sideways over the past month and keeping traders on their toes for any signs of intervention by Japanese authorities.

Pressure is mounting on the Bank of Japan to change its bond yield control as global interest rates rise. A hike to an existing yield cap set just three months ago is being discussed as a possibility in the run up to next week39;s policy meeting, sources said earlier this week.

The Aussie gained as much as 0.7 to touch a roughly twoweek high of 0.6400 on Wednesday after data showed the country39;s consumer price index rising 1.2 in the third quarter, above market forecasts of 1.1 and up from a 0.8 increase the…