(Updates prices, adds comments; changes byline, dateline, pvs
* Dollar touches 15-day low vs yen
* Most U.S. Treasury yields hit multi-week lows
* Euro set to fall 3.6 pct vs dollar for year
By Sam Forgione
NEW YORK, Dec 29 The U.S. dollar hit a 15-day
low against the yen on Thursday as traders used the quiet
holiday period to take profits on the dollar's recent gains,
while a drop in U.S. Treasury yields on waning risk appetite
reduced the greenback's appeal.
The dollar was last down 0.57 percent against the yen
at 116.57 yen after falling as much as 0.9 percent in early
trading to 116.23 yen, its lowest level since Dec. 14. The
greenback had gained 11.5 percent against the Japanese currency
between the Nov. 8 U.S. election and Wednesday.
Those gains came partly as U.S. Treasury yields surged to
multi-month and multi-year peaks on a faster projected pace of
Federal Reserve interest rate increases next year and
expectations that U.S. President-elect Donald Trump's policies
would boost inflation.
Yields on most U.S. Treasuries hit at least two-week lows on
Thursday, however, halting the dollar's gains by reducing the
appeal of higher-yielding U.S. assets compared to those of other
"It's profit-taking," said Douglas Borthwick, managing
director at Chapdelaine Foreign Exchange in New York. "The
strong dollar that we've seen since the start of November seems
to be in a toppish environment." He also noted that trading
remained thin during the holiday period.
The euro was last up 0.6 percent against the dollar
at $1.0472 after touching a one-week high of $1.0480 in early
trading, but was still on track to fall 3.6 percent against the
dollar this year.
Data on Wednesday showing contracts to buy previously owned
U.S. homes fell in November to their lowest level in nearly a
year contributed to the dollar's weakness, said Ipek
Ozkardeskaya, senior market analyst at London Capital
"The dollar fall was mostly due to renewed doubts about the
U.S. recovery after pending home sales dropped in November. This
is where the risk-off reversal started," said Ipek Ozkardeskaya,
senior market analyst at London Capital Group.
The dollar index, which measures the greenback
against a basket of six major currencies, was last down 0.49
percent at 102.790 after touching 103.630 on Wednesday and
flirting with a 14-year high of 103.650 touched on Dec. 20.
The index has gained 4.2 percent this year, with all those
gains having come after the November U.S. election.
Sterling was last flat against the dollar at
$1.2233 after touching a two-month low of $1.2201 on Wednesday.
(Reporting by Sam Forgione; Additional reporting by Jamie
McGeever in London; Editing by Meredith Mazzilli)