* Greenback weakens with 10-year Treasury yield below 1.7%
* Strong U.S. data lifted Wall Street stocks to record highs
* Bitcoin near $59,000 as crypto market cap tops $2 trillion
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, April 6 (Reuters) - The dollar stabilised near an
almost two-week low versus a basket of its peers on Tuesday,
moving in tandem with a retreat in Treasury yields from recent
peaks despite signs of a robust U.S. economic recovery.
The dollar index =USD sank as low as 92.527 in the Asian
session, its weakest since March 25. The softer turn comes less
than a week after hitting an almost five-month top at 93.439.
The yen JPY= continued to recover from a more than
one-year low near 111 per dollar, briefly strengthening back
below 110 on Tuesday. The euro EUR= extended its rise from a
nearly five-month trough close to $1.17 to trade as high as
$1.1821.
The greenback has risen strongly this year, along with
Treasury yields, as investors bet on a faster U.S. pandemic
rebound than other developed nations amid massive stimulus and
aggressive vaccinations.
But the dollar's drop this week even after Friday's
much-stronger-than-expected monthly payrolls data was followed
on Monday by the highest reading for services industry activity
on record may indicate that much of the bullish outlook is
priced in for now. "While the U.S. does look exceptional, COVID normalization
over time means the rest of the world will converge," Mark
McCormick, the global head of foreign-exchange strategy at TD
Securities, wrote in a client note.
"The USD level has now outstripped the pickup in non-U.S.
growth expectations," meaning "there's room for a USD pause" in
its recent uptrend, he wrote.
Benchmark 10-year Treasury yields US10YT=RR continued
their retreat Tuesday, dipping below 1.7% early in the Asian
session, from a peak of 1.776% last week - a level not seen
since January of last year.
That's even as the robust economic outlook boosted U.S.
stocks to record highs.
However, Westpac strategists see room for further dollar
gains, saying the run of strong data "cement the USD's
unbeatable growth rebound credentials."
"DXY has not capitalised on the strong macro tailwinds,"
they wrote, referring to the dollar index.
"Pullbacks into 92 should be bought for a run to the 2020 Q3
highs around 94.50."
Elsewhere, the Australian dollar AUD= , considered a proxy
for risk appetite, slipped slightly to $0.76415 on Tuesday,
after rallying 0.8% to start the week. The Reserve Bank of
Australia left policy unchanged on Tuesday, as expected.
The British pound rose to a 2-1/2-week high of $1.3915 in
Asia, building on the previous session's 0.6% advance.
In cryptocurrencies, bitcoin BTC=BTSP traded around
$58,882 on Tuesday, easing back a little after a two-day gain.
It reached a record high at $61,781.83 in the middle of last
month.
The cryptocurrency market capitalization hit an all-time
peak of $2 trillion on Monday, according to data and market
trackers CoinGecko and Blockfolio, as gains over the last
several months attracted demand from both institutional and
retail investors. Currency bid prices at 536 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1809 $1.1812 -0.02% -3.34% +1.1821 +1.1800
Dollar/Yen JPY=D3 110.2120 110.2150 -0.05% +6.65% +110.3920 +110.1600
Euro/Yen EURJPY= 130.16 130.13 +0.02% +2.55% +130.3300 +130.0700
Dollar/Swiss CHF=EBS 0.9371 0.9363 +0.10% +5.93% +0.9383 +0.9359
Sterling/Dollar GBP=D3 1.3911 1.3908 +0.04% +1.84% +1.3914 +1.3890
Dollar/Canadian CAD=D3 1.2534 1.2518 +0.13% -1.57% +1.2542 +1.2517
Aussie/Dollar AUD=D3 0.7646 0.7652 -0.07% -0.59% +0.7659 +0.7631
NZ NZD=D3 0.7055 0.7060 -0.04% -1.73% +0.7068 +0.7044
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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