FOREX-Dollar edges higher on strong data, despite lower yields

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

(Adds quotes, updates prices; changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, April 15 (Reuters) - The dollar index edged higher
on Thursday in choppy trading as investors balanced bullish data
showing U.S. retail sales rebounded sharply in March against a
continued drop in U.S. Treasury yields.
Retail sales increased 9.8% last month, the Commerce
Department said on Thursday, beating economists' expectations
for a 5.9% increase.
A separate report also showed that initial claims for state
unemployment benefits totaled a seasonally adjusted 576,000 for
the week ended April 10, compared with 769,000 in the prior
week. Economists polled by Reuters had forecast 700,000
applications in the latest week. “This was a one-two punch of really positive data,” said
Edward Moya, senior market analyst at OANDA in New York.
Dollar strength was capped, however, as Treasury yields
US10YT=RR dropped to one-month lows, reducing the relative
attractiveness of the U.S. currency. US/
The dollar index =USD earlier on Thursday hit a one-month
low of 91.487, before rebounding to 91.633, up 0.03% on the day.
The euro EUR=EBS fell 0.07% to $1.1971. The greenback fell
0.15% to 109.73 Japanese yen JPY=D3 .
The dollar has been on the back foot this month as Treasury
yields stabilize below one-year highs reached last month. Yields
have fallen as the U.S. Federal Reserve reiterates its
commitment to holding rates near zero for years to come, and on
some concerns that a recent uptick in inflation will be
temporary.
Strong risk appetite as stocks hit record highs is also seen
as denting the appeal of the greenback. .N
The Australian dollar AUD=D3 , a proxy for global risk
sentiment, rose 0.36% on Thursday to $0.7749.
Rising geopolitical tensions may be helping demand for
safe-haven U.S. bonds on Thursday.
“We're seeing more risks across emerging markets right now,
and that's probably going to keep some Treasury demand going,”
said Moya.
The Russian rouble tumbled on Thursday, at one point losing
2% to the dollar in volatile trade and hitting a more than
five-month low versus the euro as the White House announced new
sanctions targeting Russia's sovereign debt. U.S. President Joe Biden on Thursday authorized the move to
punish Moscow for interfering in the 2020 U.S. election -
allegations Russia denies. Bitcoin BTC=BTSP stood near a record high of $64,895
reached on Wednesday, when cryptocurrency platform Coinbase
COIN.O made its debut in Nasdaq in a direct listing. It was
last up 0.07% on the day at $63,028. Currency bid prices at 9:46AM (1346 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 91.6330 91.6190 +0.03% 1.836% +91.7300 +91.4870
Euro/Dollar EUR=EBS $1.1971 $1.1980 -0.07% -2.02% +$1.1994 +$1.1957
Dollar/Yen JPY=D3 108.7250 108.9550 -0.15% +5.33% +108.9550 +108.7300
Euro/Yen EURJPY= 130.15 130.47 -0.25% +2.54% +130.5500 +130.0700
Dollar/Swiss CHF=EBS 0.9223 0.9229 -0.04% +4.27% +0.9245 +0.9215
Sterling/Dollar GBP=D3 $1.3779 $1.3776 +0.02% +0.85% +$1.3808 +$1.3762
Dollar/Canadian CAD=D3 1.2508 1.2521 -0.10% -1.77% +1.2528 +1.2477
Aussie/Dollar AUD=D3 $0.7749 $0.7723 +0.36% +0.76% +$0.7761 +$0.7706
Euro/Swiss EURCHF= 1.1042 1.1053 -0.10% +2.16% +1.1063 +1.1041
Euro/Sterling EURGBP= 0.8686 0.8692 -0.07% -2.81% +0.8698 +0.8671
NZ NZD=D3 $0.7164 $0.7140 +0.35% -0.22% +$0.7180 +$0.7138
Dollar/Dollar
Dollar/Norway NOK=D3 8.3765 8.3950 -0.21% -2.44% +8.4050 +8.3580
Euro/Norway EURNOK= 10.0280 10.0479 -0.20% -4.19% +10.0660 +10.0190
Dollar/Sweden SEK= 8.4508 8.4648 -0.20% +3.10% +8.4770 +8.4419
Euro/Sweden EURSEK= 10.1170 10.1372 -0.20% +0.40% +10.1485 +10.1138