Dollar steady near 10-month high, keeps heat on yen
By Brigid Riley
TOKYO (Reuters) — The dollar clung close to a 10-month high against a basket of its peers on Thursday, keeping the yen near a key intervention zone as investors size up upbeat U.S. economic data and fresh comments from Federal Reserve officials.
As the dollar held firm, the euro and sterling struggled to pick up much from new multi-month-lows hit on Wednesday.
The Australian and New Zealand dollars pared losses, shrugging off retail sales data from Australia that came in weaker than expected.
Federal Reserve Bank of Minneapolis President Neel Kashkari was one among several Fed voices to caution markets on the possibility of more hikes, saying on Wednesday that ample evidence of ongoing economic strength meant that more tightening might be in the pipeline.
Fed Chair Jerome Powell is scheduled to speak later on Thursday, which could give markets further clues on the path of U.S. monetary policy.
Economic data out of the U.S. continues to surprise with its strength, defying investor expectations for a slowdown.
«Despite fears earlier this year that the U.S. could fall into recession, we are probably seeing a reacceleration in economic activity,» which is also propelling U.S. yields up, said Kyle Rodda, senior financial market analyst at Capital.com.
The U.S. dollar index, which measures the greenback against a basket of other major currencies, last stood at 106.70, hovering near an overnight peak of 106.84, the highest level since Nov. 30.
U.S. benchmark 10-year yields hit a fresh 16-year high of 4.462% overnight.
The yen , which tends to be sensitive to changes in long-term U.S. Treasury yields, was off Wednesday's new 11-month low of 149.71, but remained too close to the psychological level of 150 per
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