The U.S. Dollar hit a four-year high against the Yen to reach 114.585 on Wednesday, with benchmark 10-year Treasury yields reaching a five-month top at 1.6630% in Asia.

Yet two-year Treasury yields lingered around 0.4016% after a steep overnight drop from Monday’s high of 0.4480%, indicating forecasts for early rate hikes by the Fed are being scaled back.

This was in contrast to expectations of faster rate rises in the UK and New Zealand this week, which also fuelled expectations of hikes in the eurozone and Australia, Reuters reports.

“Risk sentiment remains in the ascendancy,” while “a fall-back in front-end U.S. yields, so symptomatic of a slight paring back in expectations for when Fed rates ‘lift-off’ might occur,” dealt the dollar a double-whammy, according to Ray Attrill, head of FX strategy at National Australia Bank in Sydney.

Simultaneously, markets are coming to “the – highly belated – realisation that whether the Fed raises (its policy) rate in 2022 or not until later, other central banks are getting in ahead of them … with the Bank of England likely next cab off the rank as early as next month,” Attrill added.

Furthermore, the Dollar index fell 0.12% to 93.698, falling back near Tuesday’s low of 93.501.

The Euro edged up 0.15% to $1.1649 from Tuesday, when it peaked at $1.1670 for the first time since 29 September. The Pound also gained 0.16% to $1.3810 after reaching a one-month high of $1.3834 in the previous session.

Elsewhere, the Australian Dollar moved up 0.31% to hit $0.7500, and the New Zealand Dollar rose 0.32% to $0.7177.

In regard to cryptocurrencies, Bitcoin dipped just under the $64,000 mark after hitting a six-month high of $64,499, not far from the mid-April record high of $64,895.