The dollar rallied to the highest level in more than two months, while stocks and Treasuries retreated, on speculation the U.S. economic recovery will prompt the Federal Reserve to reduce stimulus measures. Oil gained for the first time in 10 days.

The dollar rose against 14 of the 16 most-traded currencies tracked by Bloomberg as the Dollar Index jumped 0.7 percent to 76.916, the highest since Oct. 5, at 4:11 p.m. in New York. The Standard & Poor’s 500 Index lost 0.6 percent to 1,107.93. The 10-year note yield touched 3.62 percent, a level last seen in August. Oil ended its longest losing streak since 2001.

Reports showing bigger-than-expected growth in industrial production and wholesale inflation spurred concern that the Federal Reserve will unwind programs that have helped spur rallies in commodities and stocks this year as the dollar weakened amid record low interest rates.

(Bloomberg.com)