Dollar jumps

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    SINGAPORE/TOKYO- The dollar inched ahead on Wednesday, as a jump in US yields pushed it higher against the Japanese yen, while the kiwi briefly hit a one-month low after the central bank extended its bond buying program.

    The yield on 10-year US debt, which rises when bond prices fall, made its steepest gain in two months on Tuesday ahead of the largest ever 10-year auction later on Wednesday.

    That triggered a wave of gold selling, which deepened in Asia, and it has pressured the yen as better returns on US debt lures investment from zero-yielding Japan.

    The yen fell 0.2 percent to 106.71 per dollar, its lowest since July 24. The tumbling gold price, which has dropped roughly 7 percent in two days, also dragged on the Australian dollar since Australia is the world’s second biggest gold producer.

    The Aussie fell 0.3 percent to $0.7126 while the New Zealand dollar fell 0.5 percent to $0.6547.

    Elsewhere in financial markets, the focus was on the political holdup in Washington over a new stimulus package, which capped broader investor sentiment.

    The jump in yields was driven by both repositioning ahead of big debt issuance this week and a sense that the global recovery is looking broader and more robust – a mood helped somewhat by Russia hailing the approval of a COVID-19 vaccine.