FOREX

REFILE-FOREX-Dollar gains as U.S. Treasury yields climb, bitcoin touches new record – Reuters


 (Refiling to restore dropped word "as" to headline)
    * Graphic: World FX rates tmsnrt.rs/2RBWI5E

    By Stephen Culp
    NEW YORK, Feb 17  (Reuters) - The dollar rose on Wednesday
as rising Treasury yields and upbeat economic data helped the
greenback gain ground against a basket of world currencies.    
    Bitcoin touched a record high of $51,721, a day
after the cryptocurrency crossed the $50,000 level for the first
time. That brought its total market capitalization to more than
$900 billion, as traders bet on its further acceptance among
major companies.
    U.S. retail sales and producer prices data blew past analyst
estimates, signaling a stronger-than-expected economic recovery
from the pandemic recession as vaccine deployment gains
momentum.
    "We had a rather strong retail sales data and PPI is firming
up, providing another round of economic data that supports the
belief that the reflation trade is not going away and that
inflation is approaching us," said Edward Moya, senior market
analyst at OANDA in New York.  
    Rising U.S. bond yields also gave the dollar a boost, with
the 10-year yield rising as high as 1.333% from
around 1.20% at the end of last week.
    "The dollar in the short term is going to benefit from
yields," Moya said "Long-term, we're talking about a weaker
dollar, but in the short term we could see further strength as
yields remain elevated."
    "Everyone is going to want to ride this trade until we hear
from (U.S. Federal Reserve Chairman Jerome) Powell next week,"
Moya added.   
    The dollar index, a measure of the currency's strength
against six other major currencies, recovered  from Tuesday's
three-week low of 90.117 to last stand 0.26% higher at 90.943.
  
    The yen, which is sensitive to U.S. yields, reacted the most
with the dollar, jumping to as high as 106.21 yen in Asian
trade, its highest since September, before retreating to 105.90
.    
    The euro slipped 0.5% to $1.20. 
    The positive mood on the economic outlook is underpinning
risk-sensitive currencies.
    The British pound fell 0.3% to $1.39, having
reached its highest level since April 2018 on Tuesday.
    The Australian dollar fell 0.19% to $0.77.
    ========================================================
    Currency bid prices at 9:56AM (1456 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 90.9330        90.7090     +0.26%         1.058%        +91.0380    +90.6170
 Euro/Dollar                  $1.2042        $1.2104     -0.52%         -1.44%        +$1.2105    +$1.2031
 Dollar/Yen                   105.9000       106.0150    -0.10%         +2.54%        +106.2150   +105.8500
 Euro/Yen                     127.51         128.35      -0.65%         +0.46%        +128.4500   +127.4600
 Dollar/Swiss                 0.8974         0.8928      +0.50%         +1.42%        +0.8983     +0.8927
 Sterling/Dollar              $1.3858        $1.3902     -0.32%         +1.43%        +$1.3907    +$1.3844
 Dollar/Canadian              1.2727         1.2691      +0.29%         -0.05%        +1.2746     +1.2688
 Aussie/Dollar                $0.7738        $0.7754     -0.19%         +0.60%        +$0.7771    +$0.7725
 Euro/Swiss                   1.0805         1.0804      +0.01%         -0.02%        +1.0811     +1.0795
 Euro/Sterling                0.8688         0.8706      -0.21%         -2.79%        +0.8720     +0.8681
 NZ                           $0.7169        $0.7208     -0.53%         -0.15%        +$0.7213    +$0.7159
 Dollar/Dollar                                                                                    
 Dollar/Norway                8.5000         8.4470      +0.91%         -0.73%        +8.5265     +8.4470
 Euro/Norway                  10.2364        10.1969     +0.39%         -2.21%        +10.2703    +10.1938
 Dollar/Sweden                8.3384         8.2912      +0.08%         +1.73%        +8.3499     +8.2833
 Euro/Sweden                  10.0409        10.0330     +0.08%         -0.35%        +10.0555    +10.0318
 


    
 (Reporting by Stephen Culp; additional reporting by Ritvik
Carvalho; editing by Jonathan Oatis)
  

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