SHANGHAI, Oct 20 (SMM) - The US dollar dipped on Tuesday as the rapid rise in U.S. Treasury yields paused and other currencies, including sterling, were boosted by expectations of sooner-than-previously expected interest rate hikes.

The greenback reached a one-year high against a basket of other currencies last week as Treasury yields surged and as investors bet the Federal Reserve may need to increase rates to address stubbornly high inflation.

Yields appeared to stabilize on Tuesday, however, which reduced demand for the greenback.

The dollar’s move lower on Tuesday was also likely exaggerated by technical factors as investors unloaded long positions.

U.S. stock index futures were flat during overnight trading on Tuesday, after the S&P 500 posted its fifth straight winning session as strong earnings numbers lift sentiment.

Futures contracts tied to the Dow Jones Industrial Average gained 19 points. S&P 500 futures were up 0.07%, while Nasdaq 100 futures were flat.

The Dow advanced nearly 200 points, or 0.56%, on Tuesday for its third positive session in the last four days. Johnson & Johnson had the most positive impact on the 30-stock benchmark, while Procter & Gamble was the largest drag.

The S&P 500 added 0.74%, while the Nasdaq Composite advanced 0.71%. Both saw their fifth straight day of gains, the longest daily winning streak since late August.

Oil rose on Tuesday and was near multi-year highs as an energy supply crunch continued across the globe, while falling temperatures in China revived concerns over whether the world’s biggest energy consumer can meet domestic heating needs.

The Brent crude benchmark was up 99 cents, or 1.2%, to $85.32 a barrel. U.S. West Texas Intermediate (WTI) futures rose $1.27, or 1.5%, to $83.71 a barrel.

Prices have been climbing the last two months. Since the start of September, Brent has risen by about 19%, while WTI has gained around 22%.

Gold prices pared gains on Tuesday, after rising more than 1% earlier, as their safe-haven appeal took a knock from rising U.S. Treasury yields and upbeat earnings from American companies.

Spot gold was up 0.3% at $1,769.94 per ounce by 1:31 p.m. ET (1731 GMT). It rose as much as 1.2% earlier in the session on a weaker dollar that makes precious metals cheaper for holders of other currencies.

U.S. gold futures for December settled up 0.3% at $1,770.5.

European stocks closed higher on Tuesday, as investors monitored corporate earnings and rising coronavirus cases in countries like the U.K.

The pan-European Stoxx 600 closed up 0.4%, with utilities adding 1.4% while food and beverage stocks fell 1%.