* Dollar pressured by lower Treasury yields before key data
* Fed's Rosengren says labour market slack "still
significant"
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, April 13 (Reuters) - The dollar hovered near a
three-week low against major rivals on Tuesday, pressured by
lower Treasury yields as traders awaited highly anticipated U.S.
inflation data later in the global day.
The greenback has retreated along with U.S. yields this
month after surging to multi-month peaks on expectations that
massive fiscal stimulus coupled with continued monetary easing
will spur faster U.S. economic growth and higher inflation.
Retail sales figures due Thursday will also be closely
watched.
Boston Federal Reserve Bank President Eric Rosengren said on
Monday that the U.S. economy could see a significant rebound
this year thanks to accommodative monetary and fiscal policy,
though the labor market still has much room for improvement.
The dollar index =USD , also known as DXY, edged slightly
higher to 92.170 early in the Asian session, but still near
Thursday's low of 91.995, which was the weakest since March 23.
It had rallied to a nearly five-month high of 93.439 on the last
day of March.
"DXY has been slipping in recent days but should find
stability with the U.S. macro outperformance narrative set to
get a strong airing" in data this week, Westpac strategists
wrote in a client note, projecting a rally toward 94.500.
"Treasury issuance is surging at the same time as
inflationary pressures show in the data, which should lift the
U.S. dollar."
Westpac expects 10-year Treasury yields US10YT=RR to rise
toward the top of its recent 1.6-1.755% range this week.
The benchmark yield was at 1.6764% on Tuesday. It had surged
to a more than one-year high of 1.7760% on March 30.
New supply is also a driver of yield direction this week,
with the Treasury selling 30-year bonds on Tuesday, following
good demand at auctions of three- and 10-year notes on Monday.
US/
"How Treasury yields react to this week's supply and to key
U.S. data releases will undoubtedly provide direction for the
USD in the near-term," Rabobank currency strategist Jane Foley
wrote in a report.
"A strong (CPI) print may re-invigorate inflation fears and
lend support to the USD."
Foley forecasts the dollar to trade "choppily" in a $1.17 to
$1.20 range versus the euro EUR= ; it is currently at $1.1904,
which is near its weakest level since March 23.
The U.S. currency bought 109.49 yen JPY= , after slipping
below 109 last week for the first time since March 25.
In cryptocurrencies, bitcoin BTC=BTSP traded slightly
higher at $,60373.50, closing the gap to the record high of
$61,781.83 reached a month ago.
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Currency bid prices at 054 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1903 $1.1912 -0.08% -2.58% +1.1915 +1.1903
Dollar/Yen JPY=D3 109.5400 109.4250 +0.11% +6.06% +109.5520 +109.5100
Euro/Yen EURJPY= 130.39 130.26 +0.10% +2.73% +130.4100 +130.2700
Dollar/Swiss CHF=EBS 0.9234 0.9222 +0.14% +4.39% +0.9234 +0.9223
Sterling/Dollar GBP=D3 1.3740 1.3747 -0.04% +0.58% +1.3755 +1.3741
Dollar/Canadian CAD=D3 1.2573 1.2564 +0.08% -1.26% +1.2576 +1.2530
Aussie/Dollar AUD=D3 0.7610 0.7623 -0.16% -1.06% +0.7629 +0.7611
NZ NZD=D3 0.7012 0.7028 -0.20% -2.33% +0.7035 +0.7014
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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