Dollar regains footing as investors eye lockdown risks – Gulf Today

Dollar regains footing as investors eye lockdown risks – Gulf Today

Tokyo stocks close down after three day winning streak

The daily case count makes grave reading, but deaths have not jumped, said Chris Weston, head of research at Melbourne brokerage Pepperstone, who is more closely watching the bond market where stubbornly low yields are driving cash elsewhere.

The yield on benchmark 10-year U.S. Treasuries has been parked at roughly 0.7% for a month, well below an early June top of 0.9590% and more than 100 basis points below where they began the year.

"If we were to suddenly see signs of a sell-off in the Treasury market, that could have big implications for where global capital sits. Until that point, it's onwards and upwards," Weston said.

"Just do what's working and carry on buying."

Since April, that has been commodity currencies led among the G10 by the Aussie. It has gained 14%, the Norwegian krone 11%, the kiwi 10% and the Swedish krona 8%.

On Tuesday, the kiwi last sat steady at $0.6554 having, like the Aussie, pulled back from testing the top of a range it has kept for about a month.

The euro sat just below a two-week high touched on Monday at $1.1311 and the pound held steady at $1.2505. The yen was flat