US dollar ends Asian session higher

The U.S. dollar ended the Asian session higher on Wednesday as the greenback continued to take a cue from a spike in yields on Treasuries amid receding concerns over deflation there.

The dollar rose for a third day versus the yen, absorbing constant selling pressure from Japanese exporters, as the Treasury's 10-year yield touched 3.25% today, the highest level since late June.

President Barack Obama agreed to extend tax cuts for two years, spurring expectations that the plan will buoy the world's largest economy. This triggered selling of fixed-income securities, IMarketnews.com reports.

Meanwhile, the European currency dropped 0.3 percent $1.3214, heading to the bottom of its recent $1.3200-3450 rang. However, euro was able to sustain growth above $1.3400. Analysts suggest a possibility that the euro may probe lower as austerity measure in European nation continue to escalate.

Ireland moved a step closer to securing bailout funds after passing the first in a series of votes in its toughest budget on record. However, the traders said that investors were still likely to sell the euro on any bounce given broader anxieties about the European Union's ability to keep euro debt contagion, sandiegonewsnet.org informs.