NEW YORK, Sept. 27 (Xinhua) -- The U.S. dollar firmed in late trading on Wednesday, as U.S. Treasury bond yields continued to climb amid fears of a U.S. federal government shutdown.

The dollar index, which measures the greenback against six major peers, increased 0.41 percent to 106.6639 in late trading.

"After rising for 10 consecutive weeks, the dollar index is on course to add one more weekly gain on top of that this week. There's no fresh news behind its latest gains. Yet there has also been no macro reason for the dollar rally to end, apart from the fact it is getting a bit overstretched in the short-term outlook," said Fawad Razaqzada, market analyst at City Index and Forex.com.

Minneapolis Fed President Neil Kashkari noted on Wednesday that he's unsure if the Federal Reserve is restrictive enough and suggested that another rate hike is needed.

U.S. Treasury yields were mostly up across the board, with the benchmark ten-year yield rising five basis points to 4.607 percent, the highest level in ten years.

The two-year yield tacked on 5.4 basis points to 5.131 percent, while the 30-year bond picked up 2.7 basis points to 4.723 percent.

"In the near term, there is proactive reluctance to buy (Treasuries) particularly given the speed of the latest sell-off," said Ben Jeffrey, rates strategist at BMO Capital in New York. "There are definitely enough risks out there in terms of labor market growth and the economy, as well as the risk of a government shutdown that will eventually help to bring some demand and push rates lower."

In late New York trading, the euro was down to 1.0508 U.S. dollars from 1.0566 dollars in the previous session, and the British pound decreased to 1.2137 U.S. dollars from 1.2157 dollars.

The U.S. dollar bought 149.5950 Japanese yen, higher than 149.0710 Japanese yen of the previous session. The U.S. dollar rose to 0.9208 Swiss francs from 0.9152 Swiss francs, and it was down to 1.3510 Canadian dollars from 1.3521 Canadian dollars. The U.S. dollar rose to 11.0471 Swedish krona from 11.0285 Swedish krona.