* Fed minutes offer no new catalysts to lift greenback
* Higher U.S. stocks sap demand for dollar as a haven
* Graphic: World FX rates tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, April 8 (Reuters) - The U.S. dollar traded near more
than two-week troughs versus major peers on Thursday, tracking
Treasury yields lower, after minutes of the Federal Reserve's
March policy meeting offered no new catalysts to dictate market
direction.
Fed officials remained cautious about the risks of the
pandemic - even as the U.S. recovery gathered steam amid massive
fiscal stimulus - and committed to pouring on monetary policy
support until a rebound was more secure, the minutes showed
Wednesday.
The dollar index which measures the greenback against
a basket of six currencies, was little changed at 92.425 early
in the Asian session, after dipping to as low as 92.134 on
Wednesday for the first time since March 23.
The gauge rallied to an almost five-month high at 93.439 at
the end of last month as the U.S. pandemic recovery outpaced
most other developed nations, particularly Europe.
"Hard to argue that the U.S. macro outperformance trade is
exhausted; the strong vaccine drive, reopening and stimulus set
to produce some exceptionally strong rebound data in the next
several months," Westpac strategists wrote in a report,
forecasting a run at 94.5 for the dollar index, also known as
DXY.
"Admittedly though, the next DXY upleg may take a few weeks
before it develops momentum - a lot of good news is priced in."
The benchmark 10-year Treasury yield was around
1.67% on Thursday, after dipping below 1.63% overnight. It hit a
more than one-year top of 1.776% late last month.
The S&P 500 eked out a modest gain on Wednesday,
moving mainly sideways since surging to a record high to start
the week.
Although he said the market's direction is difficult to
call, the chief currency strategist at Citigroup Global Markets
Japan expects the next move for the greenback to be lower.
"Current market sentiment is mild risk-on, and under such
circumstances the dollar will weaken gradually - but no big
moves," Citi's Osamu Takashima said.
The retreat in U.S. yields has also removed a driver for
dollar gains, he said.
The dollar was little changed at 109.78 yen,
stabilising after its retreat from a more than one-year high of
110.97 reached on March 31.
The euro consolidated around $1.1865 after rebounding
from an almost five-month low of $1.1704, also touched on March
31.
"The vaccination progress in the Eurozone is significantly
lagging that of the U.S., and coronavirus infection rates in the
Eurozone are on the rise again," Commonwealth Bank of Australia
strategist Joseph Capurso wrote in a client note.
"As such, EUR/USD is vulnerable to a move lower towards
1.1700 in the near-term."
========================================================
Currency bid prices at 109 GMT
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar $1.1866 $1.1873 -0.05% -2.88% +1.1874 +1.1861
Dollar/Yen 109.7350 109.7750 +0.03% +6.31% +109.8900 +109.8100
Euro/Yen 130.22 130.37 -0.12% +2.60% +130.4700 +130.1900
Dollar/Swiss 0.9299 0.9297 +0.04% +5.13% +0.9302 +0.9295
Sterling/Dollar 1.3737 1.3740 -0.02% +0.55% +1.3743 +1.3735
Dollar/Canadian 1.2620 1.2607 +0.13% -0.87% +1.2623 +1.2610
Aussie/Dollar 0.7607 0.7612 -0.05% -1.10% +0.7616 +0.7607
NZ 0.7007 0.7014 -0.08% -2.40% +0.7014 +0.7005
Dollar/Dollar All spots
Tokyo spots
Europe spots
Volatilities
Tokyo Forex market info from BOJ
(Reporting by Kevin Buckland; Editing by Stephen Coates)
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