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

Published 03/12/2021, 09:23 AM
Updated 03/12/2021, 09:30 AM
© Reuters.
USD/JPY
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AUD/USD
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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.
"Risk 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.
The 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


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