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FOREX-Dollar rebounds on higher U.S. yields, upbeat factory data
July 3, 2017 / 3:32 PM / 2 months ago

FOREX-Dollar rebounds on higher U.S. yields, upbeat factory data

    * ISM U.S. manufacturing index hits highest since Aug 2014
    * Benchmark 10-year yield reaches near seven-week peak
    * Australian, Swedish central bank decisions on Tuesday
    * FX trading quiet ahead of U.S. July Fourth holiday

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, July 3 (Reuters) - The dollar rose broadly on
Monday, starting the new quarter on a positive note, bolstered
by higher U.S. government bond yields and a private report that
showed manufacturing activity increased to its strongest level
in nearly three years.
    The greenback just came off its worst quarter since 2010
last week as overseas central banks have signalled they are
considering whether to begin reducing monetary stimulus in light
of evidence their local economies are doing better.
    "The market is debating whether central banks could follow
through with their tightening. So far the data are going central
banks' way," said Steven Englander, head of research and
strategy at Rafiki Capital Management in New York.
    Earlier Monday, the Institute for Supply Management said its
index of national factory activity rose to 57.8 last month, the
highest reading since August 2014.
    This upbeat factory report propelled benchmark 10-year
Treasury yield to 2.346 percent, the highest in
nearly seven weeks, Reuters data showed. 
    A closely watched index that tracks the dollar against six
major currencies was 0.6 percent at 96.192, rebounding
from its lowest level since early October seen on Friday.
    The dollar index shed 4.71 percent in the second quarter,
its steepest quarterly loss since the 8.49 percent drop in third
quarter of 2010.
    The greenback climbed to a six-week high against the yen at
113.37 yen. It was last up 0.9 percent at 113.34 yen.
    The euro retreated from its highest in more than a
year against the dollar last week. It was last down 0.5 percent
at $1.1369.
    Currency trading activity was muted ahead of the U.S. July
Fourth holiday. U.S. financial markets will close early on
Monday and will be shut on Tuesday.    
    Ahead of Tuesday's meeting of Sweden's Riksbank, the Swedish
crown was down 0.6 percent at 8.4771 crown per dollar. 
    Any shift in the wording of the Reserve Bank of Australia's
statement, also early on Tuesday, may also support the Aussie
, which was 0.6 percent below Friday's close at $0.7645.
========================================================
    Currency bid prices at 11:21AM (1521 GMT)
 Description      RIC      Last      U.S. Close  Pct       YTD Pct     High Bid    Low Bid
                                      Previous   Change     Change                 
                                      Session                                      
 Euro/Dollar      EUR=     $1.1364   $1.1423     -0.52%    +0.00%      +1.1427     +1.1358
 Dollar/Yen       JPY=     113.3700  112.3500    +0.91%    -2.99%      +113.4200   +111.9500
 Euro/Yen         EURJPY=  128.83    128.40      +0.33%    +4.62%      +128.8900   +127.8700
 Dollar/Swiss     CHF=     0.9632    0.9581      +0.53%    -5.36%      +0.9635     +0.9583
 Sterling/Dollar  GBP=     1.2934    1.3025      -0.70%    +4.85%      +1.3023     +1.2932
 Dollar/Canadian  CAD=     1.2998    1.2962      +0.28%    +0.00%      +1.3007     +1.2965
 Australian/Doll  AUD=     0.7645    0.7686      -0.53%    +5.96%      +0.7695     +0.7645
 ar                                                                                
 Euro/Swiss       EURCHF=  1.0944    1.0949      -0.05%    +0.00%      +1.0956     +1.0923
 Euro/Sterling    EURGBP=  0.8785    0.8769      +0.18%    +0.00%      +0.8790     +0.8757
 NZ               NZD=     0.7276    0.7332      -0.76%    +0.00%      +0.7345     +0.7274
 Dollar/Dollar                                                                     
 Dollar/Norway    NOK=     8.3610    8.3454      +0.19%    -3.20%      +8.3705     +8.3362
 Euro/Norway      EURNOK=  9.5021    9.5349      -0.34%    +0.00%      +9.5348     +9.4909
 Dollar/Sweden    SEK=     8.4802    8.4274      +0.06%    +0.00%      +8.4850     +8.4172
 Euro/Sweden      EURSEK=  9.6375    9.6316      +0.06%    +0.60%      +9.6468     +9.6129
 
    
    

    
 (Additional reporting by Patrick Graham; in London; Editing by
Susan Thomas and Grant McCool)
  
 
 

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