The dollar climbed towards a recent two-month high on Wednesday on the back of firmer Asian markets and expectations Beijing will manage to limit the spread of a deadly virus, though the yen's strength indicated broader sentiment remained cautious.

Against a basket of its rivals, the dollar rose 0.1% to 98.02, advancing for a third consecutive day, and within striking distance of a two-month high of 98.19 hit last week.

Though the dollar has veered between acting as a classic safe-haven asset during times of trade-war tensions and benefitting from its status as a high-yielding currency in the developed market space in 2019, the opening days of 2020 have seen the greenback's correlation with risky assets strengthening considerably.

Still, the yen remained supported, with the Japanese currency rising 0.2% to 109.30 against the dollar, unwinding some of its hefty losses sustained against the dollar in the previous session.

Source : Reuters