The US dollar has continued its rise overnight as 10 year US treasury yields hit their highest levels since August, pushing above 3.7%.

As temperatures plummet with the winter months in many parts of the US, some speculators appear to be expecting increased crude demand to result. Benchmark crude oil prices were up $1.22 to $73.87 in early Friday (December 18) morning trade on the New York Mercantile Exchange.

After posting its highest levels for 3 months at 77.94 the dollar index has slipped back in Asia trading on profit-taking, and news that a report due to be published today will forecast that business confidence in Germany rose to the highest level since July 2008.

The US dollar index continues to push higher hitting its highest levels since early September as the risk aversion trade returns with a vengeance. The dollar index has posted a high of so far of 77.85 with the Euro suffering the most on investor fears about the level of debt contagion in the Euro zone.

The US dollar fell back a bit Wednesday (December 16) morning as analysts believe the Fed is likely to leave its key interest rate at zero. New data on consumer prices show little change after 10 months of increases, suggesting inflation is not a big enough concern at this point to warrant an immediate rise in rates.

The US dollar continues to find major low points to reach against major foreign currencies and other speculative investments. Gold is now over $1,200 with some top analysts calling for a quick move through the $2,000 level in the near future. Oil remains near $80.