Dollar steadies

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    TOKYO/SINGAPORE- The dollar hovered below recent peaks on Tuesday as investors looked to US policymakers for clues on whether they may seek to slow rising yields, while the New Zealand dollar dropped after housing reforms cooled policy-tightening expectations.

    The Turkish lira also showed some sign of stability following a 7.5 percent dive on Monday after President Tayyip Erdogan sacked a hawkish central bank chief, but markets’ relief was offset by worries about fresh lockdowns in Europe.

    The dollar crept 0.1 percent lower against the safe-haven yen to 108.74 yen and was steady at $1.1928 per euro, while making advances against the kiwi, Aussie and sterling.

    The New Zealand dollar hit a three-month low after the government introduced taxes to curb housing speculation, a move investors reckoned could allow the central bank to hold interest rates lower for longer with less risk of a property bubble.

    “The Reserve Bank (of New Zealand) will … likely revise down its house price forecasts,” ANZ Bank analysts said in a note. “This will add caution around official cash rate hikes via less-than-otherwise housing-induced domestic momentum.”

    The kiwi lost as much as 1 percent and traded at $0.7093 during the Asian afternoon. The move also rallied Kiwi bonds, especially at the short end, and it pulled the Australian dollar about 0.4 percent lower to $0.7711.