The dollar climbed to a oneyear high against the yen on Tuesday amid a spike in Treasury yields, as accelerating vaccinations and massive stimulus in the U.S. stoked inflation concerns.

The safehaven greenback also found support as investors worried about the potential fallout from the collapse of a hedge fund, identified as Archegos Capital, although those jitters had eased as the Asian trading day got under way.

The dollar rose to a cusp of 110 yen in Asia, a level not seen since March of last year. Its on track for the best month since late 2016, with the end of Japans fiscal year this month driving up dollar demand as companies seek to square their books.

Benchmark 10year Treasury yields rose as high as 1.7450 in Asia, approaching the 14month high of 1.7540 touched earlier this month. The fiveyear notes yield pushed as high as 0.9170 for the first time since March of last year.

Higher yields make a currency more attractive as an investment.

That climb in the shorterdated yield will keep the dollars upward momentum going, according to Chris Weston, the head of research at Pepperstone Markets Ltd, a foreign exchange broker based in Melbourne.

The USD has moved into a different realm as an investment destination, he wrote in a client note.

The euro languished near the 412month low of 1.1763 reached on Monday, on course to fall by the most this month since mid2019.

Tougher coronavirus curbs in France and Germany have dimmed the shortterm outlook for the European…