* Fed minutes offer no new catalysts to lift greenback
* Higher U.S. stocks sap demand for dollar as a haven
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, April 8 (Reuters) - The U.S. dollar traded near more
than two-week troughs versus major peers on Thursday, tracking
Treasury yields lower, after minutes of the Federal Reserve's
March policy meeting offered no new catalysts to dictate market
direction.
Fed officials remained cautious about the risks of the
pandemic - even as the U.S. recovery gathered steam amid massive
stimulus - and committed to pouring on monetary policy support
until a rebound was more secure, the minutes showed Wednesday.
Fed Chair Jerome Powell will speak at a virtual
International Monetary Fund conference later on Thursday.
The dollar index =USD which measures the greenback against
a basket of six currencies, edged lower to 92.371 in the Asian
session, after dipping to as low as 92.134 on Wednesday for the
first time since March 23.
The gauge rallied to an almost five-month high of 93.439 at
the end of last month as the U.S. pandemic recovery outpaced
most other developed nations, particularly Europe.
"Hard to argue that the U.S. macro outperformance trade is
exhausted; the strong vaccine drive, reopening and stimulus set
to produce some exceptionally strong rebound data in the next
several months," Westpac strategists wrote in a report,
forecasting a run at 94.5 for the dollar index, also known as
DXY.
"Admittedly though, the next DXY upleg may take a few weeks
before it develops momentum - a lot of good news is priced in."
The benchmark 10-year Treasury yield US10YT=RR was around
1.67% on Thursday, after dipping below 1.63% overnight. It hit a
more than one-year top of 1.776% late last month.
The S&P 500 .SPX eked out a modest gain on Wednesday,
moving mainly sideways since surging to a record high to start
the week.
The chief currency strategist at Citigroup Global Markets
Japan, Osamu Takashima, said that the market's direction is
difficult to call, but expects the next move for the greenback
to be lower.
"Current market sentiment is mild risk-on, and under such
circumstances the dollar will weaken gradually - but no big
moves," he said.
The retreat in U.S. yields has also removed a driver for
dollar gains, he added.
The dollar weakened slightly to 109.66 yen JPY= ,
consolidating after its retreat from a more than one-year high
of 110.97 reached on March 31.
The euro EUR= was almost unchanged from Wednesday at
$1.18715, after rebounding from the almost five-month low of
$1.1704 touched on March 31.
"The vaccination progress in the Eurozone is significantly
lagging that of the U.S., and coronavirus infection rates in the
Eurozone are on the rise again," Commonwealth Bank of Australia
strategist Joseph Capurso wrote in a client note.
"As such, EUR/USD is vulnerable to a move lower towards
1.1700 in the near-term."
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Currency bid prices at 518 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1874 $1.1873 +0.02% -2.81% +1.1876 +1.1861
Dollar/Yen JPY=D3 109.6750 109.7750 -0.09% +6.18% +109.8950 +109.6750
Euro/Yen EURJPY= 130.23 130.37 -0.11% +2.61% +130.4700 +130.1600
Dollar/Swiss CHF=EBS 0.9291 0.9297 -0.04% +5.04% +0.9302 +0.9293
Sterling/Dollar GBP=D3 1.3760 1.3740 +0.15% +0.72% +1.3767 +1.3734
Dollar/Canadian CAD=D3 1.2603 1.2607 -0.03% -1.02% +1.2627 +1.2603
Aussie/Dollar AUD=D3 0.7633 0.7612 +0.25% -0.80% +0.7635 +0.7603
NZ NZD=D3 0.7028 0.7014 +0.20% -2.13% +0.7030 +0.7005
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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