The dollar hit a oneyear high versus the yen and multimonth peaks with other currencies on Wednesday as investors bet that fiscal stimulus and aggressive vaccinations will help the United States lead a global pandemic recovery.

U.S. President Joe Biden is set to outline later on Wednesday how he intends to pay for a 3 trillion to 4 trillion infrastructure plan, after earlier this week saying 90 of adult Americans would be eligible for vaccination by April 19.

The dollar index rose as far as 93.439, the highest in almost five months. It has climbed from close to 90 at the start of March, on course for its best month since 2016.

The dollar set a oneyear top of 110.97 yen and marked an almost fivemonth high of 1.1705 per euro, although it gave up some of those gains in European trading.

The euro traded 0.1 higher at 1.1730, just off a fivemonth low against the dollar.

The dollar was also supported by a surge in U.S. bond yields, which make the currency more attractive as an investment.

The yield on the benchmark 10year Treasury note jumped to a oneyear high of 1.776 on Tuesday.

With U.S. Treasuries meaningfully under pressure yesterday, the environment is clearly supportive for the U.S. dollar, particularly as Europe continues to battle with a third Covid wave, said INGs global head of markets, Chris Turner, in a note to clients.

Still, Europe should see an economic rebound in late 2Q as the vaccination process gathers pace and U.S. Treasury moves should become less…