Dollar rises

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    SINGAPORE- The dollar extended a rebound on Monday, as sharp gains in US yields and hopes for more stimulus to boost the world’s largest economy prompted some investors to temper bearish bets, pulling the currency further away from recent multi-year lows.

    President-elect Joe Biden, who takes office on Jan. 20 with Democrats able to control both houses of Congress, has promised “trillions” in extra pandemic-relief spending.

    That has pushed the yield on the benchmark 10-year US debt up more than 20 basis points to 1.1187 percent this year, which helped the dollar to a one-month high of 104.095 yen Monday as better rates gave pause to some dollar shorts.

    The Australian and New Zealand dollars each fell more than 0.5 percent against the dollar to one-week lows, while the euro and sterling lost 0.3 percent to touch two-week lows.

    The euro last traded at $1.2183 after climbing as high as $1.2349 last week.

    “The underlying source of the revival has been the aftermath of the Senate elections and markets anticipating that we might get substantially more fiscal support for the US economy,” said National Australia Bank’s head of FX strategy, Ray Attrill.

    “Everyone’s asking whether this changes the weaker dollar narrative – that’s why I think we’re getting a bit of a continuation of what we’re seeing on Thursday and Friday.”