The dollar hit a fresh 14-year high on Tuesday, boosted by upbeat comments from Federal Reserve Chair Janet Yellen that kept alive market expectations for swifter U.S. interest rate hikes next year than had been expected. The greenback climbed broadly but its gains were strongest against the yen, which slid as much as 1 percent after the Bank of Japan kept monetary policy unchanged.

On Monday the yen had surged along with fellow safe-haven the Swiss franc after deadly incidents in Turkey and Germany. Both currencies have since given up those gains. Yellen said late on Monday that the U.S. labour market had improved to its strongest in almost a decade, suggesting wage growth is picking up. READ MORE