Dollar near three-week high as thaw in risk aversion lifts yields
By Shinichi Saoshiro TOKYO (Reuters) - The dollar held near a three-week high on Tuesday, as expectations global economies would unleash fresh stimulus and an improvement in appetite for riskier assets lifted yields on U.S. government bonds. Yields on benchmark U.S
By Shinichi Saoshiro
TOKYO (Reuters) - The dollar held near a three-week high on Tuesday, as expectations global economies would unleash fresh stimulus and an improvement in appetite for riskier assets lifted yields on U.S. government bonds.
Yields on benchmark U.S. Treasuries pulled away from three-year lows as investors tip-toed back into riskier assets, lured by hopes for stimulus in major economies such as Germany and China, which eased more recent global recession fears.
Investor focus on Tuesday will shift to the first setting of China's new lending benchmark under its recent interest rate reforms, due at 0100 GMT.[nL4N25F0F6]
Risk appetite in global markets has been boosted this week by the prospect of Germany ditching its balanced budget rule to boost spending and China's interest rate reform plan, which is expected to lower corporate borrowing costs.
"The dollar is higher across the board, tracking the rebound in yields. The prospect of Germany embarking on stimulus was the turning point and the dollar has regained momentum since," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.
The greenback traded little changed at 106.620 yen
Against the Swiss franc, a currency sought in times of market turmoil and political tensions along with the yen, the dollar hovered near a two-week high of 0.9820 franc
The euro was flat at $1.1081, caught near a two-week trough of $1.1066 set on Friday.
The Australian dollar
Market focus will shift to the annual symposium of global central bankers starting on Friday at Jackson Hole, Wyoming.
Particular focus will centre on Fed Chairman Jerome Powell's comments on monetary policy at a time when investors widely expect the Fed to cut rates again at its next meeting in September.
"A series of further rate cuts by the Fed has already been priced into the dollar. So the currency could gain a fresh boost if Powell shows any hints of dovishness and clouds rate cut prospects," Ishizuki at Daiwa Securities said.
(Reporting by Shinichi Saoshiro; Editing by Sam Holmes)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
LONDON (Reuters) - Prince Harry and his wife Meghan have refunded British taxpayers 2.4 million pounds ($3.2 million), the cost of renovating their UK home, in line with a commitment they made after announcing in January they would step back from royal duties. The refurbishment of Frogmore Cottage, a house within the grounds of Queen Elizabeth's Windsor Castle west of London, had been criticised by some British media as too expensive. The repayment comes as Harry and Meghan, an American former actress, seek to forge new careers for themselves and attain greater financial independence.
FRANKFURT (Reuters) - Biotech firm BioNTech said on Monday it widened an ongoing pivotal global study of its COVID-19 vaccine candidate to include testing in its home country of Germany.
COPENHAGEN (Reuters) - A rapid switch to electric cars to meet Denmark's ambitious climate targets will leave a massive gap in its finances, a government commission said on Monday.