FOREX-Dollar struggles at 3-week lows as recovery optimism grows

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

By Saikat Chatterjee
LONDON, Feb 16 (Reuters) - The U.S. dollar was mired at a
three-week low on Tuesday as growing optimism about the outlook
of the global economy in the coming months sent investors
scurrying to purchase riskier currencies including the euro,
crown and the British pound.
Against a basket of its rivals =USD , the greenback
steadied at 90.229, its lowest level since Jan. 27. It has
fallen nearly 1.5% over the past eight trading sessions.
"The positive outlook for the major economies continues to
support financial market sentiment thanks to sharp gains in
crude oil prices and optimism over better growth ahead due to
the impressive roll-out of COVID vaccines," MUFG strategists
said.
The latest U.S. dollar weakness was more noticeable as it
was against a broader backdrop of rising U.S. Treasury yields, a
factor that was previously supportive of the greenback.
The buoyant mood also dragged on the safe-haven Japanese yen
JPY=EBS , which fell through its 200-day moving average against
the dollar and struck multi-year lows against the euro, Aussie
and Swiss franc.
Sterling GBP=D3 , extended gains to hit $1.3946, its
highest level since April 2018 as Britain leads the world in
per-capita vaccination speed. The currency has gained almost 3%
from early-February lows. GBP/
"Things right now reflect greater comfort with the story of
a synchronised global recovery, which is why we are seeing a
weaker dollar," said Bank of Singapore currency analyst Moh
Siong Sim.
The euro EUR=EBS crept 0.2% higher to $1.2150 to re-test
recent resistance at that level. Rising oil prices lifted the
Canadian dollar CAD=D3 and Norwegian crown NOK=D3 to
multi-week highs. O/R
The Chinese yuan CNH=EBS slipped 0.1% to 6.4132 per dollar
after the Financial Times reported Beijing was exploring curbs
on rare earth mineral exports in order to hurt the U.S. firms
that use them. The dollar traded near milestone lows against other
currencies. The risk-sensitive Australian dollar AUD=D3 hit a
one-month high of $0.7802 and the kiwi NZD=D3 made a five-week
peak of $0.7257. AUD/

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