CORRECTED-FOREX-Dollar near 3-week high as thaw in risk aversion lifts yields

(Corrects quote in final paragraph)
* Dollar buoyant with U.S. yields bouncing from 3-year lows
* Easing risk aversion weighs on yen, Swiss franc
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Shinichi Saoshiro
TOKYO, Aug 20 (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 0130 GMT. 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 JPY=
following three straight sessions of gains, having moved away
from a seven-month low near 105.000 reached last week.
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 CHF=
scaled overnight.
The euro was flat at $1.1081, caught near a two-week trough
of $1.1066 set on Friday.
The Australian dollar AUD=D4 dipped 0.1% to $0.6757
against the broadly higher 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 does not sound as dovish as expected and clouds rate
cut prospects," Ishizuki at Daiwa Securities said.