FOREX-Dollar at three-week lows as Treasury yields subdued

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

(Adds quotes, updates prices; changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, April 14 (Reuters) - The dollar dipped to
three-week lows on Wednesday as Treasury yields held below
recent highs and improving risk appetite reduced demand for the
safe haven currency.
The dollar has gained this year as Treasury yields rose on
expectations of faster growth and higher inflation. That trade
has paused this month, however, with yields stabilizing below
one-year highs reached last month.
“The whole pro dollar trade is based upon the yield story
and given the fact that the yield story has backed off the
highs, the dollar has pretty much done the same thing,” said
Boris Schlossberg, managing director of FX strategy at BK Asset
Management in New York.
“Until the bond market gets the heebie-jeebies over the
inflation fears again I think the long dollar position remains
under assault,” he said.
Treasury yields have also fallen this week after the
Treasury Department saw solid demand for new sales of three-,
10- and 30-year debt on Monday and Tuesday. US/
The dollar index =USD fell to as low as 91.662, the lowest
since March 19, and was last at 91.733, down 0.05% on the day.
The euro EUR=EBS gained 0.13% to $1.1965. The greenback
fell 0.05% to 108.98 Japanese yen JPY=D3 .
Data on Tuesday showed that U.S. consumer prices rose by the
most in more than 8-1/2 years in March, but it wasn't enough to
change expectations that the Federal Reserve will hold rates
near zero for years to come. Fed Chair Jerome Powell is scheduled to speak later on
Wednesday at the Economic Club of Washington; his comments on
inflation will be keenly watched as he has previously said
higher pressures in the coming months would be transitory.
The next major U.S. economic release will be retail sales
for March on Thursday.
The New Zealand dollar rose to a three-week high of $0.7122
NZD=D3 after the country's central bank held its official
interest rate and asset purchase program steady, as expected.
In cryptocurrencies, bitcoin touched a record high of
$64,895 BTC=BTSP ahead of the listing of cryptocurrency
platform Coinbase on Nasdaq later on Wednesday. Currency bid prices at 9:28AM (1328 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 91.7330 91.7950 -0.05% 1.947% +91.8230 +91.6620
Euro/Dollar EUR=EBS $1.1965 $1.1949 +0.13% -2.08% +$1.1974 +$1.1940
Dollar/Yen JPY=D3 108.9800 109.1000 -0.05% +5.57% +109.0650 +108.8100
Euro/Yen EURJPY= 130.39 130.30 +0.07% +2.73% +130.4800 +130.0500
Dollar/Swiss CHF=EBS 0.9223 0.9206 +0.20% +4.26% +0.9232 +0.9187
Sterling/Dollar GBP=D3 $1.3774 $1.3753 +0.16% +0.83% +$1.3809 +$1.3751
Dollar/Canadian CAD=D3 1.2564 1.2534 +0.25% -1.33% +1.2576 +1.2530
Aussie/Dollar AUD=D3 $0.7688 $0.7644 +0.58% -0.06% +$0.7696 +$0.7635
Euro/Swiss EURCHF= 1.1036 1.0997 +0.35% +2.12% +1.1039 +1.0996
Euro/Sterling EURGBP= 0.8684 0.8688 -0.05% -2.83% +0.8698 +0.8670
NZ NZD=D3 $0.7119 $0.7057 +0.79% -0.96% +$0.7121 +$0.7048
Dollar/Dollar
Dollar/Norway NOK=D3 8.4190 8.4760 -0.50% -1.78% +8.4700 +8.4190
Euro/Norway EURNOK= 10.0739 10.1208 -0.46% -3.76% +10.1290 +10.0720
Dollar/Sweden SEK= 8.4667 8.5099 -0.39% +3.30% +8.5148 +8.4659
Euro/Sweden EURSEK= 10.1302 10.1694 -0.39% +0.53% +10.1749 +10.1299