SINGAPORE, July 2 Reuters The dollar was supported by rising U.S. yields and the blowtorch was on lowyielding currencies on Tuesday such as China39;s yuan and Japan39;s yen, which was pinned to its lowest since 1986.

Benchmark 10year Treasury yields rose nearly 14 basis points to 4.479 overnight, with analysts attributing the move to expectations of Donald Trump winning the U.S. presidency and raising tariffs and government borrowing. On Tuesday, it was last at 4.443 in Asian hours.

As the dollar rose, the euro handed back part of a small rally as the first round of France39;s election turned out more or less in line with polling. The single currency was last 0.11 lower at 1.07287.

Trump39;s better debate showing over President Joe Biden added to expectations that inflation may pick up pace, yield curves will steepen further and that the USD may continue to trade at a premium, said OCBC currency strategist Christopher Wong.

The yen sank to 161.745 per dollar on Tuesday, its weakest in nearly 38 years, extending a downward slide driven mainly by a wide gap in interest rates between the U.S. and Japan.

Japan39;s finance minister said on Tuesday the authorities were vigilant to sharp currency market moves, but stopped short of giving a clear intervention warning.

The yen was also sinking on crosses as yen bears were wary that the dollaryen pair was at risk of intervention by Japanese authorities.

Against the euro , the yen touched a lifetime low of 173.67 on Monday…