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FOREX-Dollar falls against commodity currencies but holds gains versus yen

Published 08/03/2021, 11:50 am
Updated 08/03/2021, 11:54 am
© Reuters.
EUR/USD
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USD/CHF
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AUD/USD
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NZD/USD
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USD/NOK
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DX
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LCO
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

* Commodity currencies gain early after Brent rises

* Dollar supported against yen and Swiss franc by yields

* U.S. stimulus, jobs data give sentiment a boost

By Stanley White

TOKYO, March 8 (Reuters) - The dollar fell against the currencies of major commodity exporters on Monday as investors increased bets on countries that will benefit from rising prices for oil, metals, and other goods.

The dollar also fell slightly against the British pound and the euro, but held at multi-month highs against the yen and the Swiss franc because of rising Treasury yields.

Analysts said that sentiment for the dollar has improved because of positive economic data and progress in passing a $1.9 trillion stimulus package, but that the greenback would continue to struggle against commodity currencies amid strong expectations for a rebound in global trade.

"We are seeing a significant divergence in the dollar," said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities.

"Commodity prices simply aren't coming down, so there's no way the dollar can rise against the Aussie and kiwi. However, the dollar will remain strong against the yen because yields are the main driver."

The Australian dollar AUD=D3 rose 0.3% to $0.7702, while the New Zealand dollar NZD=D3 gained 0.18% to reach $0.7177. The antipodean currencies are both in demand because of their links to the global commodities trade.

The U.S. currency fell 0.38% against the Norwegian crown NOK= to 8.5283 and eased slightly to 1.2637 Canadian dollars as traders bought the currencies of oil exporters.

Some traders said a jump in Brent crude futures LCOc1 above $70 a barrel for the first time in more than a year triggered a flurry of bids for commodity currencies at the start of Asian trading.

Against the euro EUR=D3 , the dollar eased slightly to $1.1921, but held steady at $1.3844 against the British pound GBP=D3 .

The dollar index =USD against a basket of six major currencies stood at 91.895, not far from a three-month high reached on Friday after data showed the U.S. economy created more than twice as many jobs as expected in February. cut their net short dollar positions in the latest week to $27.80 billion, which is the smallest short position since Dec. 15 and suggests that dollar bears are giving up on betting against the greenback.

The dollar traded at 108.35 yen JPY=D3 , close to a nine-month high. The dollar was also buoyant against the Swiss franc CHF=D3 , trading near an eight-month high of 0.9319, boosted by rising Treasury yields.

========================================================

Currency bid prices at 050 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

!RIC

!RIC

!RIC

!RIC

!RIC

!RIC

{EUR=EBS} is {EUR=EBS} {EUR=EBS} is {EUR=EBS} {EUR=EBS} {EUR=EBS}

invalid

is invalid invalid%

is

is invalid is invalid

invalid%

Dollar/Yen

JPY=D3

108.3320

108.2600

+0.08%

+4.89%

+108.4600 +108.3450 Euro/Yen

EURJPY=

129.24

129.09

+0.12%

+1.83%

+129.3900 +129.1300 Dollar/Swiss

CHF=EBS

!RIC

!RIC

!RIC

!RIC

!RIC

!RIC

{CHF=EBS} is {CHF=EBS} {CHF=EBS} is {CHF=EBS} {CHF=EBS} {CHF=EBS}

invalid

is invalid invalid%

is

is invalid is invalid

invalid%

Sterling/Dollar GBP=D3

1.3856

1.3831

+0.19%

+1.43%

+1.3863

+1.3815 Dollar/Canadian CAD=D3

1.2627

1.2649

-0.11%

-0.78%

+1.2654

+1.2624 Aussie/Dollar

AUD=D3

0.7711

0.7680

+0.42%

+0.25%

+0.7721

+0.7688 NZ

NZD=D3

0.7185

0.7165

+0.18%

-0.04%

+0.7189

+0.7167 Dollar/Dollar

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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