The dollar pulled
back a little from an 11-year peak against a basket of major currencies
on Tuesday, with the Australian dollar stealing the spotlight as it
surged after the Reserve Bank of Australia stood pat on interest rates.
The U.S. currency also was
pressured against the yen after Etsuro Honda, an economic adviser to
Japanese Prime Minister Shinzo Abe, told the Wall Street Journal in an
interview that dollar/yen may be at the "upper limit of comfort zone."
The comments pulled the dollar off a three-week high of 120.27 yen JPY= hit earlier on a spike in U.S. debt yields. It last traded at 119.77, down 0.3 percent.
"In addition to some option-related selling above 120 yen, Honda's comments helped send the dollar lower. The pullback in Japanese shares is another factor weighing on the dollar today," Kaneo Ogino, director at Global-info Co in Tokyo, a foreign exchange research firm. Tokyo's Nikkei .N225 sagged 0.2 percent.
"But these factors are only short-term selling factors. Dollar/yen firmly remains in an uptrend long term," Ogino said.
The dollar index .DXY climbed as far as 95.516, a high not seen since September 2003 before drifting down to 95.353, down 0.1 percent on the day.
The main action was on the Australian dollar, which rallied against its U.S. counterpart after the RBA opted to leave its policy rate unchanged at record low of 2.25 percent, surprising some who had looked for another easing to follow February's cut.
The Aussie jumped to a high of $0.7845 AUD=D4, bouncing from a session low of $0.7751 hit earlier amid expectations that RBA would cut interest rates.
The euro, meanwhile, was up 0.1 percent at $1.1192 EUR=, crawling up from a six-week low of $1.1160 struck overnight.
Higher U.S. Treasury yields helped limit the dollar's losses. The benchmark 10-year note US10YT=RR hovered near 2.00 percent after spiking about 8 basis points overnight.
In addition to Wall Street shares hitting fresh record highs on Monday, yields were seen driven up by a batch of mixed data overnight.
The comments pulled the dollar off a three-week high of 120.27 yen JPY= hit earlier on a spike in U.S. debt yields. It last traded at 119.77, down 0.3 percent.
"In addition to some option-related selling above 120 yen, Honda's comments helped send the dollar lower. The pullback in Japanese shares is another factor weighing on the dollar today," Kaneo Ogino, director at Global-info Co in Tokyo, a foreign exchange research firm. Tokyo's Nikkei .N225 sagged 0.2 percent.
"But these factors are only short-term selling factors. Dollar/yen firmly remains in an uptrend long term," Ogino said.The dollar index .DXY climbed as far as 95.516, a high not seen since September 2003 before drifting down to 95.353, down 0.1 percent on the day.
The main action was on the Australian dollar, which rallied against its U.S. counterpart after the RBA opted to leave its policy rate unchanged at record low of 2.25 percent, surprising some who had looked for another easing to follow February's cut.
The Aussie jumped to a high of $0.7845 AUD=D4, bouncing from a session low of $0.7751 hit earlier amid expectations that RBA would cut interest rates.
The euro, meanwhile, was up 0.1 percent at $1.1192 EUR=, crawling up from a six-week low of $1.1160 struck overnight.
Higher U.S. Treasury yields helped limit the dollar's losses. The benchmark 10-year note US10YT=RR hovered near 2.00 percent after spiking about 8 basis points overnight.
In addition to Wall Street shares hitting fresh record highs on Monday, yields were seen driven up by a batch of mixed data overnight.
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