* Greenback falls vs euro, yen, sterling* Chinese language yuan rises to highest since March* Kiwi lagging G10 currencies* Graphic: World FX charge
* Greenback falls vs euro, yen, sterling
* Chinese language yuan rises to highest since March
* Kiwi lagging G10 currencies
* Graphic: World FX charges in 2020 https://tmsnrt.rs/2RBWI5E
By Olga Cotaga
LONDON, Aug 18 (Reuters) – The U.S. greenback fell in opposition to a basket of main currencies for a fifth consecutive buying and selling day on Tuesday, approaching its lowest degree in two years beneath strain from low yields and bleak financial knowledge in the US.
The greenback has loved years of good points however the coronavirus pandemic has hit the world’s largest economic system laborious, leaving traders searching for progress alternatives elsewhere.
The greenback index was final down 0.3% at 92.55, closing in on a two-year low of 92.49.
A contemporary rally in tech shares offered a optimistic backdrop for markets and subdued demand for the safe-haven greenback, whereas a worse than anticipated studying of the New York Fed’s Empire State enterprise situations index in August additionally helped merchants persist with their bearish convictions for the forex.
Web bearish bets on the dollar rose to their largest since Might 2011 final week, and spot commerce in current days suggests the place has solely grown additional since.
Actual cash and leveraged traders most popular to precise their adverse view on the greenback by way of probably the most traded forex pair on the earth – euro/greenback – pushing euro longs to a brand new document excessive within the week to Aug. 11, newest CFTC knowledge confirmed.
“The greenback weak point just isn’t over, so I might not subscribe to the camp that claims it has change into a crowded commerce,” mentioned Neil Jones, head of hedge fund gross sales at Mizuho.
“There is a enough quantity of momentum and a optimistic sentiment as properly for the euro, so I might recommend that there’s a lot extra occurring in euro/greenback.”
He mentioned all eyes had been on key psychological $1.20 degree versus the euro, with additional good points in retailer if the extent is damaged.
The greenback was down 0.2% versus the euro at $1.1895 and had fallen 0.5% in opposition to the Japanese yen to 105.40 , a 1-1/2-week low.
The yield on the 10-year US Treasury bond has drifted again beneath 0.70% in current days after rising from a low of 0.50% hit earlier this month.
The dollar additionally declined 0.5% in opposition to the British pound to $1.3170, its weakest degree in almost two weeks..
Elsewhere, the Chinese language yuan firmed to six.9192 per greenback within the offshore buying and selling, a degree unseen since March 9, regardless of the Donald Trump administration flagging an additional tightening of restrictions in opposition to Chinese language tech gear maker Huawei.
Amongst G10 currencies, the kiwi was the laggard as New Zealand’s largest metropolis remained beneath lockdown and anticipation of future financial easing weighs on the forex.
It final purchased $0.6549 and merchants mentioned bets on the kiwi dropping had helped assist the Aussie as traders sought publicity to the Aussie/kiwi cross, which is buying and selling at a two-year peak.
(Reporting by Olga Cotaga; Modifying by Kirsten Donovan)