The greenback touched 10 month peak on Tuesday meanwhile japanese yen inch closer to the crucial 150 level, where Japanese officials are projected to be considering intervening to support the currency.

In an effort to drive inflation closer to its 2% annual objective, the Federal Reserve stated last Wednesday that it may raise rates further and was likely to maintain them high for a longer period of time.

According to data released on Tuesday, sales of brand-new single-family homes in the United States declined more than anticipated in August as the rate on the popular 30-year fixed mortgage increased beyond 7%, while annual home price growth in the country picked up speed for the second consecutive month in July.

In September, consumer confidence in the United States decreased for a second consecutive month due to concerns about rising prices and the political climate.

The dollar index that gauges the greenback versus its major pairs added 0.26% to 106.21, the highest in 10 months.

EUR/USD slumped by 0.23% to $1.0567.

GBP/USD dropped 0.45% to $1.2158, the lowest since March 17.

USD/JPY climbed to 149.08.

The broad dollar gain has hurt the Japanese yen, leading to rumors that the government of Japan will interfere in the currency.