SINGAPORE, Jan 30 (Reuters): The dollar held above a recent three-year low against a basket of major currencies on Tuesday, with traders turning their attention to U.S. President Donald Trump's State of the Union speech and a Federal Reserve policy meeting for catalysts.
The dollar rose 0.1 per cent against a basket of six major currencies to 89.430, having pulled up from a low of around 88.43 set last week, its weakest level since December 2014.
Analysts said a renewed rise in U.S. bond yields this week lent some support to the dollar. The U.S. 10-year Treasury yield reached a peak of 2.733 per cent in Asian trading on Tuesday, the highest since April 2014, and last stood at 2.712 per cent.
The euro eased 0.1 per cent to $1.2373, edging away from a three-year high of $1.2538 touched last week.
"There is a pause in the dollar's weakness, at least for now," said Teppei Ino, an analyst for Bank of Tokyo-Mitsubishi UFJ in Singapore.
Market participants are probably waiting for Trump's State of the Union speech, due later on Tuesday, for anything further he might have to say about the dollar, Ino said.
Treasury Secretary Steven Mnuchin gave U.S. currency bears a major boost last week with a tacit endorsement of a weak dollar. Trump later tried to row back from those comments, saying he ultimately wants the dollar to be strong.
Trump said on Monday he will address his proposed immigration overhaul in his State of the Union speech as well as his efforts to lower trade barriers around the world for American exports.
The president will also outline his much-anticipated infrastructure plan in the speech.
US dollar index remains steady
FE Team | Published: January 31, 2018 00:45:51
US dollar index remains steady
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