* U.S. 10-year yields touch 6-week highs
* Comey firing impact eases for now
(Recasts, adds comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, May 10 The dollar climbed to
eight-week highs against the safe-haven yen on Wednesday,
bolstered by the surge in oil prices and a modest recovery in
U.S. Treasury yields after a particularly soft 10-year note
Another safe-haven currency, the Swiss franc, slipped as
well with the general uptick in risk appetite.
Vassili Serebriakov, currency strategist at Credit Agricole
in New York, said the weak U.S. Treasury 10-year note auction as
well as oil prices hitting new highs had boosted yields, helping
the dollar's cause.
Benchmark U.S. 10-year yields, which move inversely to
prices, hit session highs following an auction that
showed weak investor demand.
U.S. crude futures, on the other hand, hit a one-week high
on Wednesday and were last at $47.27 per barrel, up 1.4
"This dollar move in the yen suggests risk appetite is
increasing and mostly being seen in commodities," said Juan
Perez, currency trader at Tempus Consulting in Washington.
The market seemed to have temporarily moved on from U.S.
President Donald Trump's unexpected dismissal of FBI Director
James Comey late on Tuesday.
The president said Comey, who had been leading an
investigation into the Trump presidential campaign's alleged
collusion with Russia to influence the election outcome, was let
go because of his mishandling of an email scandal involving 2016
Democratic presidential nominee Hillary Clinton.
Russia has denied any such meddling. The Trump
administration denies allegations of collusion with Moscow.
Trump's firing of Comey ignited a political firestorm,
raising suspicions the White House was trying to blunt the FBI
probe involving Russia. It also fueled doubts about the
government's ability to implement its economic agenda.
The market remains dollar-bullish against the yen, however,
as investors expect U.S. growth to pick up in the second half of
the year and the Federal Reserve to maintain its rate-hike
But that outlook depends largely on a generally smooth
political environment that would allow Trump to focus on
domestic issues and eagerly anticipated tax reform legislation,
said Boris Schlossberg, managing director of FX Strategy at BK
Asset Management in New York.
He added that Comey's dismissal could be just the start of
acrimonious battles in Congress and that much of Trump's
political capital could be wasted on defending himself against
accusations of wrongdoing.
In late trading, the dollar rose 0.2 percent to 114.27 yen,
after earlier rising to an eight-week peak of 114.35.
The greenback was also up 0.1 percent against the Swiss
franc at 1.0086 francs. Against a basket of six
currencies, the dollar was flat at 99.674.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Alistair
Bell and Peter Cooney)