The US dollar advanced against all G-10 currencies as rising long-term yields weighed on the euro and British pound. The Japanese yen continued its decline amid reports that Liberal Democratic Party Secretary-General Moriyama Yu intends to step down.

The Bloomberg Dollar Spot Index climbed as much as 0.5%, reaching its highest level since August 27.

The British pound fell as much as 0.9% against the dollar to 1.3426. Despite UK government bonds not significantly underperforming on Tuesday, the pound remained more sensitive to rising long-term yields than most of its peers.

The euro declined as much as 0.4% versus the dollar to 1.1663.

The dollar surged as much as 1% against the yen to 148.67, marking its highest level since August 22.