The U.S. dollar strengthened against its major counterparts in the Asian session on Wednesday, buoyed by a continued increase in U.S. treasury yields, with the yield on the benchmark ten-year note climbing above 3 percent for the first time since early 2014.

U.S. treasury yields strengthened amid hopes for higher inflation, as rising oil prices and tighter trade policies could eventually prop up prices.

Surge in U.S. treasury yields was seen a signal that the Federal Reserve may be aggressive in rate hikes, in an effort to respond to economic growth and accelerating inflation.

With the day's calendar being light, investors await U.S. durable goods orders and weekly jobless claims on Thursday and GDP data and consumer sentiment on Friday for more direction.

The greenback spiked up to a 3-1/2-month high of 0.9824 against the franc, from a low of 0.9782 hit at 5:00 pm ET. The next possible resistance for the greenback is seen around the 1.00 level.

The greenback advanced to 109.18 against the yen, 1.2190 against the euro and 1.3935 against the pound, from its early lows of 108.78 and 1.2239, and a 2-day low of 1.3997, respectively. The greenback is likely to find resistance around 111.00 against the yen, 1.20 against the euro and 1.38 against the pound.

The greenback spiked up to 0.7078 against the kiwi, its strongest since January 4. On the upside, 0.69 is likely seen as the next resistance level for the greenback.

The greenback that closed yesterday's trading at 0.7603 against the aussie and 1.2833 against the loonie strengthened to more than a 4-month high of 0.7563 and more than a 3-week high of 1.2864, respectively. If the greenback extends rise, 0.74 and 1.26 are possibly seen as its next resistance levels against the aussie and the loonie, respectively.

Looking ahead, at 4:15 pm ET, the Bank of Canada Governor Stephen Poloz testifies along with Senior Deputy Governor Carolyn Wilkins before the Standing Senate Committee on Banking, Trade and Commerce, in Ottawa.

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