* Dollar edges lower after touching 3-week high
* Eyes on Fed Chair Yellen's speech later in day
* Euro rises vs dollar after touching one-month low
(Updates to afternoon U.S. trading)
By Dion Rabouin
NEW YORK, April 10 The dollar fell on Monday as
U.S. Treasury yields dipped and traders consolidated Friday's
gains on low volume to start the holiday-shortened U.S. trading
The dollar index, which tracks the greenback against six
major currencies, rose to 101.34 in Asian trading, its highest
since March 15. But that move reversed as Treasury yields fell
on geopolitical jitters about the French presidential election,
escalating tensions in Syria and growing unease about North
The index was last down 0.15 percent at 101.04.
The dollar see-sawed against the yen throughout the
day, but was last little changed at 111.01 yen.
The euro was also little changed against the dollar
at $1.0590 after earlier falling to its lowest since March 9.
"There’s not a lot of conviction right now in the forex
market, just consolidative patterns and some back and forth
trading," said Erik Nelson, currency strategist at Wells Fargo
Securities in New York.
Investors were trading cautiously as they looked toward U.S.
retail sales data and a reading on consumer sentiment due later
this week, analysts said.
"There’s still a caution in the air ahead of big numbers
later in the week on the all-important consumer," said Joe
Manimbo, senior market analyst at Western Union Business
Solutions in Washington. "That’s capping upside at the moment."
Federal Reserve Chair Janet Yellen is scheduled to make a
speech at the University of Michigan's Ford School of Public
Policy on Monday afternoon.
Her remarks follow comments from New York Fed President
William Dudley on Friday in which he said the Fed might avoid
raising interest rates at the same time that it begins shrinking
its balance sheet, prompting only a "little pause" in the
central bank's rate hike plans.
Investors will be parsing Yellen's comments to see if she
backs Dudley's stance on reducing the U.S. central bank's
balance sheet or slowing the pace of interest rate tightening
"If she, perhaps, corroborates some of his more hawkish
comments, that could support the dollar," Wells Fargo's Nelson
said. He noted, however, that the chair is generally quite
measured in her public comments, giving markets little reason to
Volume was lower than usual due to many traders being away
for the Passover and Easter holiday breaks.
(Reporting by Dion Rabouin; Editing by Dan Grebler and Chizu