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New York -The euro-dollar rate pushed past $1.34 for the first time since February on Tuesday as US Treasury bond yields reversed course and fell for the first time since August 9.
The 10-year Treasury bill yield dropped to 2.8% from the two-year high of 2.88% reached on Monday, as bonds appeared oversold after sinking for more than three months.
Traders remained cautious though as they awaited the release of the minutes from the Federal Reserve's July policy meeting, expected to shed some light on how quickly the Fed will move to roll back its stimulus programme.
At 22:00 GMT the euro was at $1.3420, compared to $1.3334 late on Monday.
The yen came in mixed, with the dollar weaker at ¥97.32 from ¥97.56 a day earlier, while the euro picked up to ¥130.60 from ¥130.09.
There was less turmoil in emerging market currencies, after the rout of the last week. The Indonesian rupiah and Thai baht continued to fall against the dollar, but Mexico's peso, the Indian rupee and the Brazilian real were higher.
"The US dollar struggled to hold its ground ahead of the (Fed) minutes, with the euro-US dollar climbing to a six-month high of $1.3450," said David Song of DailyFX.
If the minutes show the Fed more hawkish, ready to reel in the stimulus programme, he said, it " may spark a reversal in the reserve currency".
The British pound continued its climb higher, to $1.5668 from $1.5648, and the dollar dropped again against the Swiss franc, to 0.9174 franc from 0.9239 franc.
