* Dollar falls vs euro, yen, sterling
* Chinese yuan rises to highest since March
* Kiwi lagging G10 currencies
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Olga Cotaga
LONDON, Aug 18 (Reuters) - The U.S. dollar fell against a
basket of major currencies for a fifth consecutive trading day
on Tuesday, approaching its lowest level in two years under
pressure from low yields and bleak economic data in the United
States.
The dollar has enjoyed years of gains but the coronavirus
pandemic has hit the world's largest economy hard, leaving
investors looking for growth opportunities elsewhere.
The dollar index was last down 0.3% at 92.55 =USD ,
closing in on a two-year low of 92.49.
A fresh rally in tech stocks provided a positive backdrop
for markets and subdued demand for the safe-haven dollar, while
a worse than expected reading of the New York Fed's Empire State
business conditions index in August also helped traders stick to
their bearish convictions for the currency.
Net bearish bets on the greenback rose to their largest
since May 2011 last week, and spot trade in recent days suggests
the position has only grown further since. Real money and leveraged investors preferred to express
their negative view on the dollar via the most traded currency
pair in the world - euro/dollar - pushing euro longs to a new
record high in the week to Aug. 11, latest CFTC data showed.
"The dollar weakness is not over, so I would not subscribe
to the camp that says it has become a crowded trade," said Neil
Jones, head of hedge fund sales at Mizuho.
"There's a sufficient amount of momentum and a positive
sentiment as well for the euro, so I would suggest that there is
a lot more going on in euro/dollar."
He said all eyes were on key psychological $1.20 level
versus the euro, with further gains in store if the level is
broken.
The dollar was down 0.2% versus the euro at $1.1895
EUR=EBS and had fallen 0.5% against the Japanese yen to 105.40
JPY=EBS , a 1-1/2-week low.
The yield on the 10-year US Treasury bond has drifted back
below 0.70% in recent days after rising from a low of 0.50% hit
earlier this month US10YT=RR .
The greenback also declined 0.5% against the British pound
to $1.3170, its weakest level in nearly two weeks. GBP=D3 .
Elsewhere, the Chinese yuan CNH=EBS firmed to 6.9192 per
dollar in the offshore trading, a level unseen since March 9,
despite the Donald Trump administration flagging a further
tightening of restrictions against Chinese tech gear maker
Huawei. CNY/
Among G10 currencies, the kiwi NZD=D3 was the laggard as
New Zealand's largest city remained under lockdown and
anticipation of future monetary easing weighs on the currency.
It last bought $0.6549 and traders said bets on the kiwi
dropping had helped support the Aussie as investors sought
exposure to the Aussie/kiwi cross, which is trading at a
two-year peak.
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