* Dollar gets lift from tick up in Treasury yields before
key data
* Boston Fed chief says labour market slack "still
significant"
* Graphic: World FX rates tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, April 13 (Reuters) - The dollar rose from near a
three-week low against major rivals on Tuesday, buoyed by a bump
in Treasury yields, as traders awaited highly anticipated U.S.
inflation data later in the day.
The greenback has eased back along with U.S. yields this
month after surging to multi-month peaks on expectations that
massive fiscal stimulus coupled with continued monetary easing
will spur faster U.S. economic growth and higher inflation.
Retail sales figures due Thursday will also be closely
watched.
Boston Federal Reserve Bank President Eric Rosengren said on
Monday that the U.S. economy could see a significant rebound
this year thanks to accommodative monetary and fiscal policy,
though the labour market still has much room for improvement.
The dollar index, also known as DXY, added 0.2% to
92.281 in the Asian session, moving away from Thursday's low of
91.995, which was the weakest since March 23. It had rallied to
a nearly five-month high of 93.439 on the last day of March.
"DXY has been slipping in recent days but should find
stability with the U.S. macro outperformance narrative set to
get a strong airing" in data this week, Westpac strategists
wrote in a client note, projecting a rally toward 94.500.
"Treasury issuance is surging at the same time as
inflationary pressures show in the data, which should lift the
U.S. dollar."
Westpac expects 10-year Treasury yields to rise
toward the top of its recent 1.6-1.755% range this week.
The benchmark yield gained by about 2 basis points to
1.6926% on Tuesday, but still traded well below the 1.7760%
level hit on March 30, which was the highest in over one year.
New supply is also driving yield direction this week, with
the Treasury selling 30-year bonds on Tuesday, following good
demand at auctions of three- and 10-year notes on Monday.
"How Treasury yields react to this week's supply and to key
U.S. data releases will undoubtedly provide direction for the
USD in the near-term," Rabobank currency strategist Jane Foley
wrote in a report.
"A strong (CPI) print may re-invigorate inflation fears and
lend support to the USD."
Foley forecasts the dollar to trade "choppily" in a $1.17 to
$1.20 range versus the euro; it gained 0.2% on Tuesday to
$1.18890.
The U.S. currency strengthened 0.3% to 109.73 yen,
after slipping below 109 last week for the first time since
March 25.
The Australian dollar slid 0.3% to $0.75990, while
the British pound declined 0.1% to $1.37305.
In cryptocurrencies, bitcoin traded slightly
higher at $60,369.01, closing the gap to the record high of
$61,781.83 reached a month ago.
========================================================
Currency bid prices at 442 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar $1.1890 $1.1912 -0.18% -2.68% +1.1915 +1.1888
Dollar/Yen 109.7200 109.4250 +0.26% +6.22% +109.7370 +109.5100
Euro/Yen 130.47 130.26 +0.16% +2.79% +130.4900 +130.2700
Dollar/Swiss 0.9246 0.9222 +0.28% +4.53% +0.9248 +0.9223
Sterling/Dollar 1.3730 1.3747 -0.09% +0.53% +1.3755 +1.3730
Dollar/Canadian 1.2578 1.2564 +0.11% -1.23% +1.2580 +1.2530
Aussie/Dollar 0.7599 0.7623 -0.30% -1.20% +0.7629 +0.7599
NZ 0.7007 0.7028 -0.29% -2.42% +0.7035 +0.7007
Dollar/Dollar All spots
Tokyo spots
Europe spots
Volatilities
Tokyo Forex market info from BOJ
(Reporting by Kevin Buckland; Editing by Shri Navaratnam and
Ana Nicolaci da Costa)
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