Dollar steadies as risk aversion ebbs, yields rise

The dollar steadied on Friday after coming off the week`s lows against its peers as earlier risk aversion in global financial markets receded, pushing up U.S. yields.

The dollar index against a basket of six major currencies <.dxy> was little changed at 93.822.

The index had edged up overnight to pull away from a four-week trough of 93.402 set on Wednesday. Wall Street shares rallied overnight after sagging through much of the week, causing a 4 basis points jump in the long-term Treasury yield to shore up the dollar.

TRENDING NOW

Vedanta shares slip as the firm discusses issuance of non-convertible debentures

Anil Singhvi strategy September 21: Important levels to track in Nifty, Nifty Bank today

EPFO: Which form should I use to withdraw advance from my provident fund?

EMS IPO Listing Date Today LIVE Updates: Anil Singhvi predicts strong debut - Check stop loss

Fino Payments Bank receives complaints about misappropriation of funds; stock slips over 8%

Dow Jones, S&P 500 gyrate after Fed keeps rates steady, warns of higher for longer

HDFC AMC shares jump after RBI's nod to acquire up to 9.5% stake in Karur Vysya Bank and DCB Bank

Lok Sabha passes women's reservation bill by 454 to 2 votes

REC shares shrug off weakness on D-Street; what is driving the infra financier stock?

Employee Pension Scheme (EPS): Know importance of Form 10C and 10D in pension withdrawal?

Apollo Tyres shares decline 3% on disruption of operations at Limda plant

Success of Chandrayaan-3 will have big impact on India's industrial, technological ecosystem: Nirmala Sitharaman

SJVN's two-day OFS opens today; shares tank around 10%

Infosys, Zydus and Godrej Properties: Stocks to watch out for on Thursday

Infosys shares fall after IT firm inks deal with chipmaker giant Nvidia

The greenback was a shade lower at 112.935 yen .

The dollar had bounced overnight from a one-month low of 112.470 yen midweek as an ebb in investor confidence halted a surge in global equities and lifted the Japanese currency.

"While the comeback in equities has stopped the recent decline in Treasury yields, focus remains on U.S. tax reforms," said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo.

"Yields cannot rise much further when it is unclear whether tax reforms can go through this year. Dollar/yen can test the 114.00 handle but lacks momentum for a sustained surge under such conditions."

The U.S. House of Representatives on Thursday approved a broad package of tax cuts sought by President Donald Trump. The debate now moves to the Senate, where Republican majority is smaller and no decisive action is expected until after next week`s Thanksgiving holiday.

The euro inched up 0.1 percent to $1.1785 , trimming overnight losses.

The common currency was on track to gain 1 percent on the week. It had rallied to a one-month high of $1.1862 on Wednesday after data showed strong growth for Germany`s economy in the third quarter.

Sterling extended gains after drawing support overnight when an initiative by European Central Bank President Donald Tusk on Brexit negotiations was taken as mildly positive. [GBP/]

The pound rose 0.1 percent to $1.3204 to put further distance between the week`s low of $1.3063 marked on Monday when perceived troubles for British Prime Minister Theresa May hurt the currency.

The Australian dollar was little changed at $0.7585 . It was poised to end 1 percent lower on the week, during which it sank to a near five-month low of $0.7567 on lower commodity prices and weak domestic data.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)