The benchmark 10-year Treasury yield hit 3.058 percent on Tuesday, its highest level since 2011.
The yield, a barometer for mortgage rates and other financial instruments, has jumped recently on signs of rising inflation, which sparked market speculation for more rate-hikes later this year.
Analysts pointed out the possible relaxation of trade tensions between China and the United States has helped to boost U.S. Treasury yields, supporting the currency market.
On the economic front, advance estimates of U.S. retail and food services sales for April were 497.6 billion U.S. dollars, an increase of 0.3 percent from the previous month, in line with market expectations, said U.S. Commerce Department on Tuesday.
The dollar index, which measures the greenback against six major peers, increased 0.64 percent at 93.183 in late trading.
In late New York trading, the euro decreased to 1.1850 dollars from 1.1943 dollars in the previous session, and the British pound was down to 1.3510 dollars from 1.3568 U.S. dollars in the previous session. The Australian dollar was down to 0.7473 dollar from 0.7529 dollar.
The U.S. dollar bought 110.33 Japanese yen, higher than 109.64 Japanese yen of the previous session. The U.S. dollar rose to 1.0019 Swiss franc from 1.0000 Swiss franc, and it increased to 1.2863 Canadian dollars from 1.2796 Canadian dollars.