By Tom Westbrook
       SINGAPORE, Sept 26 (Reuters) - The dollar stood by
10-month highs against a basket of major currencies on Tuesday,
supported by U.S. bond yields scaling 16-year peaks, while the
yen tiptoed deeper into the intervention danger zone.
    A combination of resilient economic data, hawkish Federal
Reserve rhetoric and a budget deficit to be financed by
borrowing has the 10-year Treasury yield up more than 45 basis
points in September to top 4.5% for the first time since 2007.
    Rates markets are priced for an almost 40% risk of another
Fed hike this year, against slimmer chances for another rise in
Europe, and the difference has helped prop up a dollar many had
bet would swiftly fall once short-term rates peaked.
    As U.S. yields rose, the euro lost 0.5% overnight,
hitting a six-month trough of $1.0575 and setting a course for
its worst quarterly drop in a year, down about 3%. 
    Sterling is also set to snap three quarters of
gains, with a loss of 3.8% over the three months to September.
It fell to a six-month low of $1.2195 overnight and traded only
a whisker above that level early in the Asia session.
    The U.S. dollar index touched its highest since
November at 106.1.
    "From here it eyes levels around 107.20," said analysts at
Australia's Westpac bank. "Few currencies will resist the
bullish dollar macro resiliency theme and the euro and Chinese
yuan look more vulnerable than most."
    Last week brought more signs that central banks beyond the
Fed are reaching the end of their hiking cycles.
    The Swiss franc has tumbled through its 200-day
moving average to hit its lowest since June after the central
bank surprisingly kept short-term rates on hold.
    The yen has slowly but inexorably slid toward the
150-per-dollar mark as policymakers stuck with ultra-easy
settings.
    The psychological level is seen as a likely red line for the
finance ministry, whose warnings of possible intervention have
stepped up in recent weeks. Traders have an eye on a Tuesday
meeting of political leaders and Bank of Japan officials.
    The yen hit 148.97 to the dollar on Monday and last traded
at 148.72.
    Rising commodity prices have provided some support to the
antipodean currencies, though they have been mostly sideways for
the past month or so. The Aussie was last steady at
$0.6417 and the kiwi at $0.5962.
    China's yuan held at 7.3146 in offshore trade and
has come under pressure from fresh fears the country's property
market quagmire will swallow economic growth.
    U.S. consumer confidence and home sales data is due later on
Tuesday, with slight weakening seen on both fronts though doubts
that that could much dent the dollar.    
    "Even if the U.S. economy is headed for a slowdown, the
dollar could find support on the back of haven demand given
broad based concerns over weak global growth," said Rabobank's
senior FX strategist Jane Foley.
    "We remain of the view that the dollar is unlikely to weaken
significantly until Fed rate cuts are firmly on the horizon,"
she said. "We are currently trading fairly close to our
long-held euro/dollar $1.06 target. We see downside risk to
this."

========================================================
    Currency bid prices at 0056 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                                                                                    
                              $1.0584         $1.0592    -0.07%          -1.22%      +1.0596     +1.0581
                                                                                                
 Dollar/Yen                                                                                     
                              148.8950        148.8200   +0.04%          +0.00%      +148.9000   +148.7450
                                                                                                
 Euro/Yen                   157.58          157.71     -0.08%          +12.32%     +157.7100   +157.3900
                                                                                                
 Dollar/Swiss                                                                                   
                              0.9127          0.9120     +0.07%          -1.30%      +0.9130     +0.9119
                                                                                                
 Sterling/Dollar                                                                                
                              1.2206          1.2213     -0.05%          +0.93%      +1.2215     +1.2207
                                                                                                
 Dollar/Canadian                                                                                
                              1.3458          1.3455     +0.01%          -0.69%      +1.3461     +1.3449
                                                                                                
 Aussie/Dollar                                                                                  
                              0.6419          0.6423     -0.05%          -5.82%      +0.6425     +0.6416
                                                                                                
 NZ                                                                                             
 Dollar/Dollar                0.5964          0.5968     -0.03%          +0.00%      +0.5969     +0.5962
                                                                                                
                                                                                                
    
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 (Reporting by Tom Westbrook; Editing by Jamie Freed)