The U.S. dollar traded higher against most of other major currencies in late trading on Wednesday as U.S. Treasury bond yields hit new highs.

The benchmark 10-year Treasury yield hit a new record high of 3.1 percent on Wednesday, underpinning appetite for the currency.

The yield, a barometer for mortgage rates and other financial instruments, has jumped recently on signs of rising inflation, which sparked market speculation for more rate-hikes later this year.

The probability that the U.S. central bank will raise its benchmark rate a fourth time this year went above 50 percent for the first time, according to the CME's FedWatch tracking tool for the fed funds futures.

Analysts noted that rising geopolitical concerns plus tumbling stock markets also make for a good background for the 'safe haven' currencies.

On the economic front, the U.S. industrial production rose 0.7 percent in April, beating expectations of 0.6 percent, according to statistics released by the Federal Reserve on Wednesday.

Meanwhile, privately-owned housing starts in April were at a seasonally adjusted annual rate of 1.287 million, lower than market expectation, the U.S. Commerce Department reported Wednesday.

The dollar index, which measures the greenback against six major peers, increased 0.2 percent at 93.407 in late trading.

In late New York trading, the euro fell to 1.1802 dollars from 1.1850 dollars in the previous session, and the British pound was down to 1.3482 dollars from 1.3510 U.S. dollars in the previous session. The Australian dollar rose to 0.7515 dollar from 0.7473 dollar.

The U.S. dollar bought 110.26 Japanese yen, lower than 110.33 Japanese yen of the previous session. The U.S. dollar fell to 1.0013 Swiss franc from 1.0019 Swiss franc, and it fell to 1.2791 Canadian dollars from 1.2863 Canadian dollars.