NEW YORK, Oct 19 (Reuters) - The dollar dipped on Tuesday as the rapid rise in U.S. Treasury yields paused and other currencies, including sterling, were boosted by expectations of sooner-than-previously expected interest rate hikes. The greenback reached a one-year high against a basket of other currencies last week as Treasury yields surged and as investors bet the Federal Reserve may need to increase rates to address stubbornly high inflation. Yields appeared to stabilize on Tuesday, however, which reduced demand for the greenback. The dollar’s move lower on Tuesday was also likely exaggerated by technical factors as investors unloaded long positions. “The movement in rates hardly explains extent of the USD drop,” analysts at Scotiabank said in a report. “Rather, it seems USD long liquidation has snowballed into a broader clear out of positioning, triggering a technical reversal in the USD generally,” they said. The dollar index against a basket of other currencies was last down 0.27% on the day at 93.67, after earlier dropping to 93.50, the lowest since Sept. 28. The euro gained 0.29% to $1.1644. Currencies, including sterling and the New Zealand dollar, are benefiting from rising interest rate increase expectations. The British pound jumped 0.60% to $1.3810 as money markets priced in a cumulative 35 basis points in rate hikes by the end of the year. read more New Zealand"s dollar gained 0.95% to $0.7152 after data on Monday showed the fastest consumer-price inflation in more than a decade. read more Britain and New Zealand have led a rise in short-term bond yields, with short-dated yields climbing comparatively more than in the United States. The Aussie touched a six-week high of $0.7476, shrugging off dovish minutes from the Reserve Bank of Australia"s last meeting. read more The yuan hit a four-month high as fears about contagion from property giant China Evergrande"s debt troubles receded and some of its peers made bond coupon payments. Policymakers said late last week the situation was controllable. read more The offshore yuan strengthened to as much as 6.3788 per dollar, the strongest since June 10. In cryptocurrencies, bitcoin rose as high as $63,338 for the first time since mid-April, closing in on the all-time high of $64,895.22.