* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Saikat Chatterjee
LONDON, Feb 24 (Reuters) - The dollar remained at multi-year
lows against the Antipodean currencies and held near a one-month
low versus the euro as reflation trades gripped the currency
markets on Wednesday.
Federal Reserve Chair Jerome Powell reiterated on Tuesday
that U.S. interest rates will remain low and the Fed will keep
buying bonds to support the U.S. economy. The dollar resumed its
decline towards the lows recorded at the start of the year after
a brief rally in late January. Money flowed from safe havens like the dollar, Swiss franc
and the Japanese yen towards currencies expected to benefit from
a pick-up in global trade, and to countries like Britain that
are recovering quickly from the coronavirus pandemic.
"The extension of weakness in safe haven currencies such as
the Swiss franc appears consistent with building confidence in
the global economic recovery," MUFG strategists said in a note.
Some notable moves were seen in the currency markets this
week. The franc weakened below 1.10 francs per euro for the
first time since the end of 2019, with a global rise in bond
yields also curtailing the appeal of the safe-haven currencies.
The dollar's weakness in recent days has been more
remarkable as it comes against the backdrop of a broader rise in
U.S. yields. Benchmark 10-year borrowing costs US10YT=RR are
holding near their highest in nearly a year. US/
The dollar index =USD against a basket of six major
currencies was at 90.111, near the six-week low of 89.941 it
reached overnight.
"Risk appetite has improved a lot, and this leaves the
dollar at a big disadvantage," said Junichi Ishikawa, foreign
exchange strategist at IG Securities.
The Australian dollar AUD=D3 , which tends to benefit from
rising metal and energy prices, rose to a three-year high of
$0.7945 before paring gains to trade 0.1% stronger at $0.7914.
The euro EUR=D3 bought $1.21495, close to the one-month
high of $1.2180 set overnight. The British pound GBP=D3
climbed past $1.42 overnight for the first time since April
2018.
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World FX rates https://tmsnrt.rs/2RBWI5E
YTD FX performance https://tmsnrt.rs/3aPudxo
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