FOREX-Dollar rises as yields support, off 15-yr low vs yen

* Dollar gains across board, higher US yields help

* Yen in retreat from 15-year peak on dollar

By Hideyuki Sano

TOKYO, Sept 10 (BestGrowthStock) – The dollar rose against major
currencies on Friday, staging a rebound against the yen and the
Swiss franc following a rise in U.S. bond yields, while the yen
slipped against commodity currencies.

Chinese trade data showed higher than expected imports for
August, supporting commodity-linked currencies such as the
Australian dollar against the low-yielding yen, which is often
used to fund carry trades into higher-yielding currencies.

The dollar edged further off this week’s 15-year low against
the yen, helped by a rise in U.S. Treasury yields the previous
day and a widening in the U.S.-Japan yield spread, but it
struggled to clear resistance around 84.30 yen (JPY=: ).

“U.S. bond yields have risen near their highest levels since
the last week’s payroll data. I think the impact of the rise in
U.S. yields is driving the yen down,” said Katsunori Kitakura,
chief dealer at Chuo Mitsui Banking Corp.

The dollar rose 0.5 percent to 84.16 yen (JPY=: ), briefly
reaching 84.30 and topping its five-day moving average at 84.27
yen for the first time in a week. But it struggled to hold those
levels, with resistance also from the tenkan line at 84.29 on the
daily Ichimoku chart.

“The next target will be its high of 85.23 yen hit after the
payroll data,” Kitakura said.

Others expect strong resistance at 85 yen and above after the
greenback failed to maintain gains at that level a week ago
following stronger-than-expected U.S. payroll data.

Japanese exporters are said to want to sell the dollar around
that level ahead of half-year book closing at the month-end.

The dollar hit a 15-year low of 83.34 yen this week,
intensifying speculation that Japanese authorities might step in
to curb yen gains if the move accelerates towards 80 yen.


PDF presentation on the yen:


The dollar also gained against a basket of currencies (.DXY: )
(=USD: ) and rose 0.3 percent to 1.0180 Swiss francs (CHF=: ) after
this week falling to its lowest against the franc since December.

The Australian dollar made no headway against the greenback
although it held near a four-month high at $0.9278 set on
Thursday after strong Australian jobs data.

It slipped 0.3 percent to $0.9207 (AUD=D4: ).

It held its ground against the yen at 77.42 yen (AUDJPY=R: )
but failed to keep gains made immediately after trade data out of
China showed imports up an annual 35.2 percent in August, boding
well for domestic demand and trading partners including
Australia. [ID:nTOE689024]

The euro slid 0.2 percent to $1.2665 (EUR=: ), with support
expected at its 100-day moving average at $1.2657. It was flat on
the yen at 106.50 yen.
(Additional reporting by Reuters FX analyst Rick Lloyd in
Singapore and Wayne Cole in Sydney; Editing by Joseph Radford)

FOREX-Dollar rises as yields support, off 15-yr low vs yen