* Dollar index touches 13-month high against major

currencies

* Tech stock sell-off sparks safe-haven demand

* Yen slides despite Tokyo intervention warnings

By Jiaxing Li

HONG KONG, June 24 (Reuters) - The U.S. dollar extended

gains to reach a fresh 13-month high against a basket of major

currencies on Wednesday as investors sought shelter from a tech

stock sell-off and positioned for Fed rate hikes.

A broad sell-off in technology and semiconductor shares has

dragged global stocks lower as investors take profits on a long

rally, sparking safe-haven demand for dollar and bonds.

Meanwhile, expectations of a U.S. rate hike continued to build

with Federal Reserve officials sounding increasingly hawkish

amid the strength of the U.S. economy. Markets are pricing in a

37% chance of a 25-basis-point hike at the July meeting, up from

8.5% a week ago, and 70% for September up from 29.1%, according

to CME FedWatch.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

climbed to a high of 101.44, the strongest level since May 13,

2025.

"The U.S. dollar is still the preferred safe-haven," said

Ray Attrill, head of FX strategy at National Australia Bank.

"Obviously the momentum is on its side at the moment, but I

think there is a lot priced in," he said. "We'll have to see a

correction in risk sentiment, one that's broader rather than

just the tech sector, or the market further ratcheting up its

expectations for hikes, before the dollar can go very much

higher from here."

The euro last traded at $1.1375, near a one-year low. The

British pound weakened slightly to $1.3199, after Bank

of England policymaker Alan Taylor said an "extended hold" for

interest rates was the right response to inflation pressure.

The risk-sensitive Australian dollar was steady at

$0.6918 ahead of the latest CPI reading later in the day. The

New Zealand dollar weakened 0.05% to $0.5665, a fresh

seven-month low.

Also supporting the safe-haven demand, the U.S. and Iran

appeared to be at odds on some major aspects of their framework

including nuclear issues and control of the Strait of Hormuz,

raising questions about the viability of their fragile peace

deal.

YEN LANGUISHES

The Japanese yen last traded at 161.57 after briefly

weakening to a two-year low of 161.93 late on Monday as the

greenback extended its gains. A break above 161.96 would leave

the yen at its weakest level since 1986.

The latest round of verbal warnings from Japanese officials had

done little to relieve sustained pressure on the currency, amid

wide U.S.-Japan rate differentials and doubts about Tokyo's

commitment to intervention.

The Japanese yen could weaken to 165 per dollar if the Fed

raises interest rates this year, former Bank of Japan

policymaker Sayuri Shirai said.

Some Bank of Japan board members called for further interest

rate hikes to push the central bank's policy rate closer to

levels deemed neutral to the economy, a summary of opinions at

their June policy meeting showed on Wednesday.