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FOREX-Dollar little changed as low U.S. yields offset solid data
June 22, 2017 / 4:03 PM / 6 months ago

FOREX-Dollar little changed as low U.S. yields offset solid data

    * Safehaven bids underpin support for yen
    * Norwegian crown rises after Norges Bank strips easing bias
    * Kiwi jumps after RBNZ sees positive prospects for growth

 (Updates market action, changes dateline, previously LONDON)
    By Richard Leong
    NEW YORK, June 22 (Reuters) - The dollar was flat against a basket of
currencies on Thursday as low U.S. bond yields offset in-line data on domestic
jobless claims and home prices, keeping it close to the one-month peak it
reached earlier this week.
    The yen garnered some safe-haven demand on initial weakness on Wall Street
and softness in other major stock markets. 
    The Norwegian crown and the New Zealand dollar were the notable gainers in a
quiet trading session after their countries' central banks showed confidence in
their economic outlook.
    The dollar had strengthened following the Federal Reserve's decision to
raise U.S. interest rates last week and leave the door open for another increase
by year-end despite a recent softening of inflation.
    The bounce faded as doubts crept in as to whether the modest current
economic expansion warrants further rate increases and while the Fed plans to
shrink its $4.5 trillion balance sheet.
    "The market has not bought into the Fed's hawkish rhetoric," said Boris
Schlossberg, managing director of FX strategy at BK Asset Management in New
York. "The market is dubious about U.S. growth in the second half of the year.
That's having a mild negative effect on the dollar."
    The U.S. bond market has reflected traders' doubts as the yield curve on
Wednesday flattened to levels not seen in nearly a decade.
    The yield curve stabilized on Thursday in reaction to reports showing a
continuingly tight labor market and home prices that appreciated in April more
than what traders expected.
    An index that tracks the dollar against six major currencies was 0.05
percent lower at 97.509. It reached an one-month high of 97.871 on Tuesday.
    The euro was 0.1 percent lower at $1.1157, while the dollar was
fractionally weaker at 111.35 yen.
    The yen was 0.1 percent firmer against the euro at 124.22 yen,
with the pan-European STOXX 600 down 0.04 percent.
    The Dow and S&P 500 were modestly higher.
    Among other currencies, the Norwegian crown rose after Norway's central bank
lifted its rate forecasts for 2017 and 2018 and said a rate cut was no longer
    It was last up 0.55 percent at 8.4826 crowns per dollar and up 0.6
percent at 9.4670 crowns per euro.
    Meanwhile, the kiwi rose 0.7 percent to $0.7267 after the Reserve
Bank of New Zealand rang several upbeat notes in its outlook for growth and
impact of current exchange rates. 
    Currency bid prices at 11:25AM (1525 GMT)
 Description      RIC         Last      U.S. Close  Pct Change  YTD Pct
                                         Previous                Change
 Euro/Dollar      EUR=        $1.1159   $1.1166     -0.06%      +6.14%
 Dollar/Yen       JPY=        111.3600  111.3700    -0.01%      -4.71%
 Euro/Yen         EURJPY=     124.26    124.36      -0.08%      +0.91%
 Dollar/Swiss     CHF=        0.9721    0.9724      -0.03%      -4.49%
 Sterling/Dollar  GBP=        1.2667    1.2668      -0.01%      +2.68%
 Dollar/Canadian  CAD=        1.3220    1.3332      -0.84%      -1.56%
 Australian/Doll  AUD=        0.7545    0.7550      -0.07%      +4.57%
 Euro/Swiss       EURCHF=     1.0848    1.0858      -0.09%      +1.22%
 Euro/Sterling    EURGBP=     0.8806    0.8812      -0.07%      +3.38%
 NZ               NZD=        0.7267    0.7223      +0.61%      +4.70%
 Dollar/Norway    NOK=        8.4875    8.5304      -0.50%      -1.73%
 Euro/Norway      EURNOK=     9.4710    9.5242      -0.56%      +4.24%
 Dollar/Sweden    SEK=        8.7339    8.7446      -0.19%      -4.10%
 Euro/Sweden      EURSEK=     9.7472    9.7656      -0.19%      +1.75%

 (Additional reporting by Patrick Graham, Ritvik Carvalho in London; Editing by
Alison Williams and Pritha Sarkar)

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