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FOREX-Dollar steadies; euro hurt by vaccine delays and German business morale slump
Published at 25/01/2021 at 12:27 -
FOREX-Dollar index resumes its decline as global markets turn hopeful again
Published at 25/01/2021 at 08:51 -
FOREX-Dollar pauses its decline on fresh virus worries
Published at 25/01/2021 at 04:13 -
FOREX-Dollar firm as economic, pandemic gloom damp risk appetite
Published at 25/01/2021 at 01:30 -
FOREX-Dollar gains after three-day fall as risk rally takes a breather
Published at 22/01/2021 at 20:38 -
FOREX-Dollar edges up after 3-day losing streak as risk rally pauses
Published at 22/01/2021 at 16:17 -
FOREX-Dollar inches up after three-day losing streak; risk currencies fall
Published at 22/01/2021 at 12:44 -
FOREX-Dollar stabilises after three-day decline; PMIs in focus
Published at 22/01/2021 at 09:03 -
FOREX-Dollar nurses weekly loss as bounce fades
Published at 22/01/2021 at 06:09 -
FOREX-Dollar's bounce fades as risk appetite rises
Published at 22/01/2021 at 01:45
Market News
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Oil prices steady as lockdowns curb U.S. stimulus optimism
Published at 25/01/2021 at 16:38 -
PRECIOUS-Gold pares gains as the dollar edges higher
Published at 25/01/2021 at 16:15 -
PRECIOUS-Gold firms as dollar, yields ease; Biden stimulus plan in focus
Published at 25/01/2021 at 12:26 -
PRECIOUS-Gold eases on doubts over U.S. stimulus passage
Published at 25/01/2021 at 08:40 -
Oil prices fall for 2nd session as COVID-19 lockdown concerns cast pall over demand prospects
Published at 25/01/2021 at 02:31 -
PRECIOUS-Gold rises as U.S. stimulus hopes bolster appeal
Published at 25/01/2021 at 01:05 -
Oil falls on China's COVID-19 cases, high crude build
Published at 22/01/2021 at 22:44 -
PRECIOUS-Gold falls more than 1% on firm dollar but on course for weekly gain
Published at 22/01/2021 at 19:10 -
REFILE-UPDATE 6-Oil falls as China COVID-19 cases trigger clampdowns
Published at 22/01/2021 at 16:43 -
PRECIOUS-Gold slips as dollar firms but still set for first weekly gain in three
Published at 22/01/2021 at 13:12
FOREX-Dollar buoyed by rising U.S. yields amid new stimulus prospects
Published at
12/01/2021 at 06:03
* Dollar index rebounding from nearly three-year low
* Biden has promised "trillions" in extra spending
* Graphic: World FX rates in 2020
By Kevin Buckland
TOKYO, Jan 12 (Reuters) - The dollar held four days of gains against major peers on Tuesday as the prospect of massive fiscal stimulus pushed U.S. yields higher.
President-elect Joe Biden, who takes office on Jan. 20 with his Democratic party in control of both Houses, has promised "trillions" in extra pandemic-relief spending.
The dollar index has rebounded from a nearly three-year low reached last week as the benchmark 10-year U.S. Treasury yield topped 1% for the first time since March and rose as high as 1.148% overnight.
The support from rising yields has so far trumped worries that the extra spending would increase debt levels and trigger faster inflation, which ordinarily would make the greenback less attractive.
Many analysts expect the U.S. currency to resume the decline that saw the dollar index lose close to 7% in 2020 as expanded stimulus and vaccine rollouts brighten the global economic outlook. Investors tend to buy the dollar when they are looking for safer investments.
The dollar index was little changed at 90.578 in Asian trading, having risen as high as 90.73 overnight for the first time since Dec. 21. It dipped to 89.206 on Jan. 6, a level not seen since March 2018.
"It's complicated because higher U.S. yields are giving the dollar a bounce, but stimulus could support U.S. equities, and the dollar would remain weak," said Osamu Takashima, head of G10 FX strategy at Citigroup Global Markets Japan in Tokyo.
"In the medium-term, we remain bearish on the dollar. Dollar assets look expensive."
Speculators in the FX market are extremely bearish on the dollar, U.S. Commodity Futures Trading Commission data released on Friday showed.
The greenback added 0.1% to 104.305 yen , after rising to a one-month high of 104.40 on Monday.
The euro was largely steady at $1.21425 after slipping to $1.21320 in the previous session for the first time since Dec. 21.
Currency markets mostly shrugged off a Democratic push to impeach President Donald Trump following last week's siege of the Capitol.
"We do not expect U.S. political theatre to be a major driver of the USD," Commonwealth Bank of Australia currency analyst Joe Capurso wrote in a client note.
"Market participants are looking to the policies of the Biden presidency rather than the dying days of the Trump presidency."
"Given the USD is modestly overvalued, we expect the recent lift in the USD to be limited," he added.
Meanwhile, China's yuan edged up against the dollar on demand for cash ahead of next month's Lunar New Year holiday.
Onshore spot yuan opened at 6.4770 per dollar and was changing hands at 6.4712 at midday, 81 pips stronger than the previous late session close.
Bitcoin was trading at $35,186 as its red-hot rally has faltered since it soared to an all-time high of $42,000 on Jan. 8.
========================================================
Currency bid prices at 2:39PM (539 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar $1.2146 $1.2150 -0.03% -0.59% +1.2162 +1.2139
Dollar/Yen 104.2650 104.1500 +0.12% +0.96% +104.3120 +104.1300
Euro/Yen 126.64 126.67 -0.02% -0.22% +126.7700 +126.5800
Dollar/Swiss 0.8911 0.8904 +0.11% +0.75% +0.8916 +0.8897
Sterling/Dollar 1.3532 1.3515 +0.13% -0.94% +1.3532 +1.3509
Dollar/Canadian 1.2770 1.2786 -0.07% +0.34% +1.2789 +1.2772
Aussie/Dollar 0.7696 0.7695 +0.03% +0.06% +0.7710 +0.7687
NZ 0.7167 0.7160 +0.11% -0.18% +0.7175 +0.7159
Dollar/Dollar
All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ
(Reporting by Kevin Buckland; Editing by Sam Holmes and Ana Nicolaci da Costa)
((Kevin.Buckland@thomsonreuters.com;))