(Updates prices, adds comments; changes byline, dateline, pvs
* Dollar hits 8-1/2-month high vs yen of 114.43 yen
* Oil producers agree to curb oil output for first time
* Dollar hits roughly 10-month high vs Swiss franc
* Treasury yields rise on surge in oil prices
* Strong U.S. ADP data supports greenback
By Sam Forgione
NEW YORK, Nov 30 The U.S. dollar hit its highest
level against the yen in 8-1/2 months on Wednesday and also
surged against the euro and Swiss franc after a surge in oil
prices pushed U.S. Treasury yields higher, while strong private
payrolls data bolstered expectations for a hawkish Federal
Reserve next year.
The dollar rose about 1.7 percent against the yen to 114.43
yen, its highest level since early March. The euro
fell about 0.8 percent against the dollar to a session low of
$1.0554 after U.S. crude prices rallied more than 8.5 percent as
some of the world's largest oil producers agreed to curb oil
output for the first time since 2008.
The dollar was last on track to gain about 9 percent against
the yen in November to mark its strongest monthly performance
since August 1995. The dollar also hit a roughly 10-month high
against the Swiss franc of 1.0204 francs.
The gains in oil prices boosted views of higher inflation,
which in turn sent U.S. Treasury yields higher given the
negative impact of inflation on bond prices. The higher Treasury
yields fueled demand for the dollar relative to currencies such
as the euro and yen, whose government bond yields are still
"It's the widening of interest rate differentials," said
Alvise Marino, FX strategist at Credit Suisse in New York, in
reference to the dollar's gains on the back of higher Treasury
yields. Benchmark 10-year U.S. Treasury note yields
were last up about 10 basis points on the day, at 2.395 percent.
A continuation of strong U.S. economic data on Wednesday
after a stronger-than-expected gross domestic product growth
reading on Tuesday also supported the dollar by underpinning
expectations that the Fed would raise interest rates next month
and continue to hike at a swift pace next year, analysts said.
ADP National Employment Report data on showed U.S. private
employers added 216,000 jobs in November, well above economists'
expectations. The ADP figures precede the U.S. Labor
Department's more comprehensive nonfarm payrolls report on
"It absolutely blasted expectations, and when you see that
happen, that should promote some dollar strength," said Stephen
Casey, senior foreign exchange trader at Cambridge Global
Payments in New York.
The dollar index, which measures the greenback against a
basket of six major currencies, was last up 0.8 percent at
(Reporting by Sam Forgione; Editing by Jonathan Oatis)