* Dollar on defensive as wounds from dovish Fed still remain
* Greenback receives small favours from Fed officials’
* Aussie awaits China production PMI information for cues
By Shinichi Saoshiro
TOKYO, Mar 24 (Reuters) – The dollar dipped opposite the
euro and yen on Tuesday, succumbing to downward vigour from
lower U.S. debt yields as investors remained jumpy after last
week’s surprisingly dovish Federal Reserve process statement.
The greenback got small assistance overnight from comments by
Federal Reserve officials, some of whom seemed to tumble in line
with a Mar 18 process matter that suggested a less
aggressive calendar for hiking seductiveness rates.
Cleveland Fed President Loretta Mester told Bloomberg TV on
Monday that a stronger dollar is a vigilance of mercantile strength
but that it will alleviate U.S. trade expansion this year.
Some marketplace players drew comparisons with final week’s Fed
statement and Chair Janet Yellen’s comments that were taken as
hints of regard about a clever dollar.
Fed Vice Chair Stanley Fischer pronounced a executive bank was
“widely expected” to start lifting seductiveness rates this year
though a process trail stays uncertain, with a latter rather
than a former sketch some-more courtesy from a heedful market.
“The Mar Fed assembly spelled a large change in a Fed’s
outlook. The Fed mentioning a dollar can be traced behind to
Yellen, and we are now removing a possibility to sign a other
officials’ views,” pronounced Shinichiro Kadota, arch Japan forex
strategist during Barclays in Tokyo.
“We have many Fed officials vocalization this week and their
comments simply pull attention,” he said.
San Francisco Fed President John Williams speaks after in
the day in Sydney. The process house voting member has recently
expressed hawkish views.
The dollar was down 0.1 percent during 119.64 yen,
pulling serve divided from an eight-year high of 122.04 reached
two weeks ago amid expectations that a Fed would strengthen the
case for a rate travel in June.
The euro edged adult 0.1 percent to $1.0951, continuing
its liberation from a 12-year tray of $1.0457 struck early last
The dollar index stood small altered during 97.057. It
has declined usually from a 12-year rise above 100.00 reached
earlier in a month.
The Australian dollar was down 0.2 percent during $0.7870
as traders awaited a HSBC rough manufacturing
PMI consult for China due during 0145 GMT.
The Aussie is supportive to mercantile trends in China,
Australia’s vital trade partner.
U.S. Treasury yields dipped on Monday, with a benchmark
10-year note produce hovering nearby six-week lows, amid
investor stress over negotiations between Greece and its
creditors. Fed Vice Chair Fischer’s comments per uncertain
policy trail also helped poke yields lower.
(Editing by Kim Coghill)