The dollar reached its highest in over two weeks

According to the latest news, the U.S. dollar reached its highest in over two weeks. Remarkably, the possibility of higher U.S. interest rates and a sell-off in tech stocks soured risk sentiment to the benefit of the greenback.

On Tuesday, the U.S. dollar’s rally put pressure on the euro, which fell once again below the $1.20 mark on Wednesday. It touched its lowest versus the buck in over two weeks, down 0.2% on the day.

The U.S. dollar index, which gauges the dollar against a basket of peer currencies, surged as high as 91.436, its highest level since April 19.

The surge was also supported by comments from Janet Yellen U.S. Treasury Secretary that rate hikes may be needed to halt the economy overheating.

Moreover, Federal Reserve Chair Jerome Powell has argued the labor market is still far short of where it needs to be.

That position could be tested on May 7 should the April payrolls report be as strong as some are suggesting. The median forecast is for a growth of 978,000, but estimates stretch as high as 2.1 million.

The pound traded flat at $1.3895 a day ahead of the Bank of England meeting

However, Europe’s reopening and pick-up in the pace of vaccinations could limit the greenback’s gains.

Notably, trading was limited in Asia with Japan and China on holiday. However, the New Zealand dollar increased to $0.7170 when local jobs data proved strong than anticipated.

The greenback boosted versus the yen to 109.41 and again needs to break resistance at 109.61 to promote more speculative bids.

The British pound traded flat at $1.3895 a day ahead of the Bank of England meeting. Remarkably, it is expected by some to announce a tapering of its bond-buying program.

In crypto market, Dogecoin hit an all-time high of $0.58. Ethereum, the second-largest cryptocurrency by market capitalization, also hit an all-time high Tuesday, pushing past the $3,500 mark.