Rebound in US yields helps dollar; euro hits 2-week low

London

THE dollar hit a 31/2 month high against a basket of currencies on Wednesday after a voting member of the US Federal Reserve's policy-setting committee expressed support for an interest rate hike in September.

Atlanta Federal Reserve president Dennis Lockhart's comments brought cheer to dollar bulls, many of whom were having a rethink about whether the Fed would raise rates this year after subdued wages and tepid economic growth in the first quarter that had clouded the policy outlook.