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FOREX-Safe-haven dollar on back foot as U.S. yields slide, boosting risk appetite

Published 10/03/2021, 12:22 pm
Updated 10/03/2021, 12:24 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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NZD/USD
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DX
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BTC/USD
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BTC/USD
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* Commodity currencies hold big advances from overnight

* Bitcoin tops $55,000, closing gap to record high

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

TOKYO, March 10 (Reuters) - The U.S. dollar remained lower against major rivals on Wednesday after pulling back from multi-month highs as a retreat in Treasury yields reduced the currency's appeal.

Riskier currencies including the Australian and New Zealand dollars held overnight gains as the pause in the bond market rout of recent weeks boosted investor sentiment, which also lifted stocks.

Bitcoin BTC=BTSP topped $55,000 for the first time since Feb. 22 as it narrowed the gap to its record high above $58,000.

A gauge of the dollar =USD - a traditional haven currency - against six peers was little changed at around 92.033 after falling back from a 3-1/2-month high of 92.506 overnight. Less than two weeks ago, it was trading below 90.

The U.S. currency has tracked gyrations in Treasury yields, which have soared on bets that a faster-than-expected economic rebound would spark a surge in inflation, with President Joe Biden expected to sign a $1.9 trillion coronavirus aid package as soon as this week. analysts still expect the dollar to weaken over the course of this year though, but the speed of recent gains has forced some to adjust their views.

Westpac, which as recently as last week was talking about selling the dollar index into 91, now sees it reaching as high as 94.50 before resuming last year's downtrend as the rest of the world closes the gap with the U.S.'s pandemic recovery.

"Global reflation is alive and well, and Europe will get her vaccination act together at some point too," Westpac strategists wrote in a note Wednesday.

"A continuation of the global recovery ... should see commodity currencies outperform."

The Aussie AUD= was mostly flat at $0.7708 after jumping 1% overnight.

New Zealand's kiwi NZD= slipped 0.1% to $0.7165 following Tuesday's 0.8% increase.

The euro EUR=EBS was 0.1% lower at $1.18880 after bouncing off Tuesday's 3 1/2-month low of $1.18355.

Against the yen JPY=EBS , another traditional safe haven currency, the greenback traded 0.1% higher at 108.575 following its retreat from a nine-month top of 109.235.

In cryptocurrencies, bitcoin BTC=BTSP rose as high as $55,811.40 on Wednesday and was last up 1.3% at $55,661.70.

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Currency bid prices at 112 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.1896

$1.1901

-0.05%

-2.64%

+1.1904

+1.1888 Dollar/Yen

JPY=D3

108.5820

108.5100

+0.01%

+5.07%

+108.6770 +108.5250 Euro/Yen

EURJPY=

129.17

129.10

+0.05%

+1.77%

+129.3100 +129.0700 Dollar/Swiss

CHF=EBS

0.9287

0.9280

+0.11%

+5.00%

+0.9290

+0.9279 Sterling/Dollar GBP=D3

1.3888

1.3889

+0.02%

+1.68%

+1.3891

+1.3879 Dollar/Canadian CAD=D3

1.2641

1.2640

+0.03%

-0.71%

+1.2651

+1.2635 Aussie/Dollar

AUD=D3

0.7706

0.7721

-0.15%

+0.21%

+0.7718

+0.7703 NZ

NZD=D3

0.7166

0.7176

-0.10%

-0.17%

+0.7181

+0.7165 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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