Key Points
SINGAPORE (Reuters) The dollar eased slightly on Wednesday though it stayed near a two-week high, underpinned by a confluence of factors including elevated U.S. Treasury yields and a cautious turn in risk sentiment that weighed on Wall Street...
The New Zealand dollar, often used as a proxy for risk appetite, was last 0.29% higher at $0.62695, having slid to a two-week low of $0.62485 earlier on Wednesday...
A surge in risk appetite at the end of last year sparked by a dovish tilt in the Federal Reserves December policy meeting which further fuelled bets for U.S. rate cuts in 2024, had toppled the greenback and sparked a rally in Treasuries and stocks...
That, however, failed to carry on into the New Year, with a bout of risk aversion causing the S&P 500 and Nasdaq Composite to close their first trading session of 2024 lower, dragged down by big tech names..
The greenback was underpinned by a rebound in U.S. Treasury yields, which saw the benchmark 10-year yield hitting an over two-week high in the previous session..
