The dollar was approaching multiyear highs yesterday after an upward revision to growth data added to a rally sparked by the Federal Reserve’s signal that it would raise rates in the coming months.

The dollar index, which measures the currency against a weighted basket of its peers, was up 0.6 per cent to 97.59, leaving the gauge only about 3 per cent shy of the 12-year high touched in March. The dollar has climbed 2 per cent so far in July, fully reversing a decline of 1.5 per cent for June, as investors have positioned their portfolios for tighter policy from the central bank.

The benchmark touched its session high after GDP data for the first quarter were significantly revised higher to show growth of 0.6 per cent, an improvement on the previous reading that showed a contraction of 0.2 per cent in the period.