SYDNEY- The dollar was carrying a couple of bruises on Wednesday as Federal Reserve officials played down the chance of a half point rate hike in March and a rally in global equity markets tarnished some of its safe haven allure.
Stellar results from Alphabet after the bell saw that stock surge 7 percent and lift Wall Street futures, benefiting risk sensitive currencies including the Australian and New Zealand dollars.
The euro looked steadier at $1.1270, having risen 0.3 percent overnight and further away from last week’s 20-month trough at $1.1122. A break above $1.2300 resistance would help counter the recent bearish trend.
The dollar was back at 114.70 yen, after dropping 0.4 percent overnight and away from last week’s top at 115.68 which now marks major resistance. Still, it remains comfortably above key support around 113.47.
Reflecting that pullback, the dollar index eased to 96.272 and off its recent 19-month high of 97.441.
The euro got a lift from rising EU yields, with German 10-year yields hitting their highest since mid-2019 after lofty inflation readings stoked speculation the European Central Bank might have to tighten early. – Reuters
