US$ builds on rally as Fed prepares ground for Dec lift-off

London

THE dollar hit a three-month high against a basket of major currencies on Thursday, bolstered by comments from influential Federal Reserve officials who kept chances of an interest rate hike in December alive.

US two-year Treasury yields rose to their highest in 41/2 years and spreads over their German counterparts widened to their maximum since late 2006, boosting the allure of the dollar to investors.

The dollar index, which tracks the greenback against six major peers, was up 0.15 per cent at 98.135, after having gained 0.8 per cent on Wednesday. The dollar's gains came as chances for a December rate hike rose over 50 per cent after Federal Reserve chief Janet Yellen laid out what appears …