* Greenback set for 0.6% drop this week after hitting
1-month low
* Benchmark yield fell most in 5 months despite strong U.S.
data
* Federal Reserve officials continue to bang
lower-for-longer drum
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, April 16 (Reuters) - The dollar headed for its worst
back-to-back weekly drop this year amid a continued retreat in
Treasury yields from more-than-one-year highs as investors
increasingly bought into the Federal Reserve's insistence of
continued monetary support.
The benchmark 10-year Treasury yield US10YT=RR dipped to a
one-month low of 1.528% overnight, from as high as 1.776% at the
end of last month, even in the face of Thursday's
stronger-than-expected retail sales and employment data.
San Francisco Fed President Mary Daly said the same day that
the U.S. economy is still far from making "substantial progress"
toward the central bank's goals of 2% inflation and full
employment, the bar the Fed has set for beginning to consider
reducing its support for the economy. The dollar index =USD , which tracks the greenback against
six major peers, dipped to an almost-one-month low of 91.487
overnight before recovering somewhat to 91.678 early in the
Asian session.
It's set for a 0.6% decline for the week, extending the 0.9%
slide from the previous week.
The gauge, also known as the DXY, surged with Treasury
yields to an almost-five-month high at 93.439 on the final day
of March, on bets that massive fiscal spending coupled with
continued monetary easing will spur faster U.S. economic growth
and higher inflation.
But bond and foreign-exchange markets now seem willing to
give the Fed the benefit of the doubt that inflation pressure
will be transitory and monetary stimulus will remain in place
for years to come.
The dollar is "still struggling to find its feet in April,
even though the U.S. macro outperformance narrative could not be
more propitious," Westpac strategists wrote in a research note.
"The DXY is trading like its topping out now, sooner than
(we) expected."
Retail sales increased 9.8% last month, beating economists'
expectations for a 5.9% increase, while first-time claims for
unemployment benefits tumbled last week to the lowest level in
more than a year, separate reports showed Thursday. The dollar traded at 108.68 yen JPY=EBS , heading for a
0.9% loss for the week, about the same as the previous week.
The euro EUR=EBS changed hands at $1.1964, set for a 0.5%
weekly advance, adding to the previous period's 1.3% surge.
In cryptocurrencies, Bitcoin BTC=BTSP stood around
$63,478, near the record high of $64,895 reached on Wednesday,
when cryptocurrency platform Coinbase COIN.O made its debut in
Nasdaq in a direct listing. 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. Currency bid prices at 055 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1959 $1.1966 -0.05% -2.11% +1.1975 +1.1959
Dollar/Yen JPY=D3 108.6970 108.7050 -0.01% +5.23% +108.7370 +108.6900
Euro/Yen EURJPY= 130.00 130.15 -0.12% +2.43% +130.1800 +129.9800
Dollar/Swiss CHF=EBS 0.9226 0.9221 +0.06% +4.28% +0.9226 +0.9220
Sterling/Dollar GBP=D3 1.3766 1.3781 -0.07% +0.80% +1.3785 +1.3770
Dollar/Canadian CAD=D3 1.2553 1.2548 +0.06% -1.41% +1.2554 +1.2536
Aussie/Dollar AUD=D3 0.7740 0.7748 -0.06% +0.66% +0.7754 +0.7741
NZ NZD=D3 0.7164 0.7171 -0.08% -0.22% +0.7177 +0.7165
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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