Dollar finds footing on U.S. economy as euro and yen falter

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The dollar began the week firmly and within a whisker of milestone peaks against the euro and yen on Monday, as U.S. economic strength and a vaccine rollout proceeding much more quickly than in Europe drew investors into the greenback.

FILE PHOTO: A picture illustration shows U.S. 100 dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao/File Photo

The yen stood just shy of strong resistance and Friday’s 10-month low of 109.85 per dollar to trade at 109.77 early in the Asia session.This year’s 76-basis-point rise in 10-year Treasury yields - as the U.S. economy rebounds - has opened the gap to its widest since last February. That has drawn Japanese investment, which has in turn helped push the yen down nearly 6% for the quarter.

The Aussie was last down 0.1% at $0.7631 on Monday and the New Zealand dollar fell by the same margin to $0.6989, while sterling slipped 0.1% as well to $1.3784.

 

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