* Dollar hits 9-month high vs yen of 114.53 yen
* Dollar set to post biggest gain vs yen in over 21 years
* 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
* Euro set to post biggest monthly drop vs dollar in a year
By Sam Forgione
NEW YORK, Nov 30 The U.S. dollar hit its highest
level against the yen in 9 months on Wednesday and also surged
against the euro and Swiss franc after a rally 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 as much as 1.9 percent against the yen to
114.53 yen, its highest level since March 2, while the
euro fell nearly 0.9 percent against the dollar to a
session low of $1.0554. U.S. crude prices rallied more than 10
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 nearly 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.
Benchmark 10-year U.S. Treasury note yields rose as
much as 11 basis points to 2.41 percent.
A continuation of strong U.S. economic data 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 0.5 percent at
The index was set to gain about 3.1 percent for the month,
while the euro was set to post its biggest monthly decline
against the dollar in a year, of 3.5 percent.
(Reporting by Sam Forgione; Editing by Jonathan Oatis and Grant