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FOREX-Safe-haven dollar wallows near one-week low as bond yields retreat

Published 12/03/2021, 12:23 pm
Updated 12/03/2021, 12:24 pm
© Reuters.
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US10YT=X
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* Commodity-linked Aussie and kiwi trade near one-week highs

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

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

By Kevin Buckland

TOKYO, March 12 (Reuters) - The safe-haven dollar languished near a one-week low on Friday as calming bond markets lifted investor sentiment and appetite for Asian currencies.

The commodity-linked Australian and New Zealand dollars traded close to one-week highs reached overnight as inflation fears ebbed, sending Wall Street stocks to record highs.

Cryptocurrency bitcoin BTC=BTSP briefly rose above $58,000, approaching a record high.

The dollar index =USD wallowed just north of the 91.364 level touched overnight for the first time since Feb. 4. It has dropped around 0.6% this week, after retreating from a more than three-month high of 92.506 reached Tuesday.

The gauge remains 1.6% higher 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, before their retreat to around 1.5% currently.

A benign consumer price index reading this week helped allay fears that increased fiscal stimulus and sustained ultra-easy monetary policy could lead the U.S. recovery to overheat.

Weekly employment data overnight, meanwhile, added to positive signals from the jobs market, as President Joe Biden signed his $1.9 trillion pandemic relief bill into law. sentiment is back in the ascendancy," Ray Attrill, head of forex strategy at National Australia Bank, wrote in a client note.

"A 1.5% rather than 1% risk-free rate is evidently no longer a problem for risk assets," although for the dollar, "it still looks a bit premature to call a resumption of the 2020 downtrend with any degree of conviction."

The Aussie AUD= traded at $0.77865, on the cusp of the one-week high of $0.7793 reached Thursday. New Zealand's kiwi NZD= changed hands at $0.7223, near the one-week high of $0.7240 from overnight.

The euro also traded close to a one-week high of $1.1990.

On Thursday, the European Central Bank said it was ready to accelerate money-printing to keep eurozone yields down. dollar consolidated at around 108.60 yen JPY= , another safe-haven currency, after pulling back from a nine-month high of 109.235 reached on Tuesday.

Bitcoin last traded at $57,185.71, up more than 12% for the week, after topping $58,000 on Thursday for the first time since it set a record high at $58,354.14 on Feb. 21.

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Currency bid prices at 048 GMT Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.1982

$1.1986

-0.02%

-1.92%

+1.1988

+1.1980 Dollar/Yen

JPY=D3

108.5670

108.4150

+0.00%

+4.96%

+108.5770 +0.0000 Euro/Yen

EURJPY=

130.09

130.02

+0.05%

+2.50%

+130.1300 +130.0400 Dollar/Swiss

CHF=EBS

0.9249

0.9247

+0.02%

+4.54%

+0.9251

+0.9247 Sterling/Dollar GBP=D3

1.3990

1.3994

-0.04%

+2.39%

+1.3992

+1.3988 Dollar/Canadian CAD=D3

1.2529

1.2536

-0.04%

-1.59%

+1.2535

+1.2530 Aussie/Dollar

AUD=D3

0.7786

0.7787

-0.01%

+1.22%

+0.7790

+0.7782 NZ

NZD=D3

0.7223

0.7227

-0.06%

+0.58%

+0.7231

+0.7223 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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