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FOREX-Dollar steadies from one-week lows as bond yields tick up

Published 12/03/2021, 04:14 pm
Updated 12/03/2021, 04:18 pm
© Reuters.
EUR/USD
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USD/JPY
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USD/CHF
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AUD/USD
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USD/CAD
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NZD/USD
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DX
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US10YT=X
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BTC/USD
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BTC/USD
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* Commodity-linked Aussie and kiwi ease from near one-week highs

* Bitcoin climbs 12% this week, eyes record above $58,000

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds comments; updates prices)

By Kevin Buckland and Sagarika Jaisinghani

TOKYO, March 12 (Reuters) - The U.S. dollar climbed from a near one-week low on Friday as bond yields inched higher, but it looked set for its first weekly fall in three against a basket of its major rivals as riskier currencies drew support from calmer market sentiment.

The dollar index against six major currencies rose 0.2% to 91.58 =USD after hitting 91.364 overnight for the first time since March 4. It has dropped around 0.6% this week, retreating from a more-than-three-month high reached on Tuesday.

The euro EUR= traded at about $1.1965, holding firm after the European Central Bank, as widely expected, said on Thursday it would accelerate its emergency bond purchases over the next quarter. dollar index has firmed more than 1.6% this year as it tracked benchmark 10-year Treasury yields US10YT=RR from below 1% to as high as 1.625% at the end of last week. On Friday, the yield stood at around 1.55%.

Focus next week will be on the U.S. Federal Reserve's policy meeting after Chair Jerome Powell refrained from raising concerns about higher bond yields earlier this month.

"The real dollar story still awaits the Fed to play its card," said Stephen Innes, chief global markets strategist at Axi.

"Will the Fed continue to walk the dovish talk? Or will it walk back from its dovish commitments when and if it becomes clear that the fiscal- and vaccine-led recovery is kicking into full gear? It is the line that separates the dollar bulls from bears over the next 6-to-12 months."

The safe-harbour Swiss franc CHF= eased to 0.9267 against the dollar after sliding to over a seven-month low earlier this week, while the yen JPY= fell 0.2% to 108.71.

The Bank of Japan may tweak a three-tier deposit system at next week's policy review to exempt a larger portion of reserves from negative interest rates, sources told Reuters. commodity-linked Australian and New Zealand dollars retreated from near one-week highs, but were still on track to post their first weekly gains in three as improving economic data lifted metals prices.

The Aussie AUD= traded at $0.77780 after hitting its highest since March 4 overnight. New Zealand's kiwi NZD= changed hands at $0.7215 having climbed to near a one-week high of $0.7240 overnight.

The oil-linked Canadian dollar CAD= was slightly lower at C$1.25 after rising for three straight sessions.

Cryptocurrency bitcoin BTC=BTSP last traded at $57,150.49, up more than 12% for the week. It topped $58,000 earlier on Friday, approaching a record high of $58,354.14 hit on Feb. 21.

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

Currency bid prices at 0403 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.1962

$1.1986

-0.19%

+0.00%

+1.1989

+1.1960 Dollar/Yen

JPY=D3

108.7000

108.4150

+0.22%

+0.00%

+108.7750 +108.6500 Euro/Yen

EURJPY=

130.03

130.02

+0.01%

+0.00%

+130.2800 +130.0200 Dollar/Swiss

CHF=EBS

0.9265

0.9247

+0.20%

+0.00%

+0.9267

+0.9247 Sterling/Dollar GBP=D3

1.3975

1.3994

-0.13%

+0.00%

+1.4004

+1.3973 Dollar/Canadian CAD=D3

1.2543

1.2536

+0.09%

-1.47%

+1.2550

+1.2527 Aussie/Dollar

AUD=D3

0.7781

0.7787

-0.07%

+1.16%

+0.7800

+0.7771 NZ

NZD=D3

0.7215

0.7227

-0.15%

+0.49%

+0.7232

+0.7211 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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