Dollar loses gains versus major peers

Dollar loses gains versus  major peers

TOKYO: The dollar wallowed near its lowest level in a week versus major peers on Friday, as improved risk sentiment wiped out recent gains amid easing concerns about contagion from a potential China Evergrande Group (3333.HK) default.
Risk appetite returned, lifting oil and global equities, even as hawkish comments from the Bank of England pushed up yields globally, with those on 10-year U.S. Treasury notes hitting the highest since July overnight at 1.437%.
That failed to help the greenback though, with the U.S. Dollar Index , which measures the currency against a basket of six rivals, easing slightly to 93.068 from Thursday, when it slid 0.36% and touched the lowest since Sept. 17 at 92.977.
That erased gains for the week, and set the index up for a 0.16% decline. “Risk sentiment was unperturbed by the move in yields, instead taking its lead from news around Evergrande,” Tapas Strickland, an analyst at National Australia Bank, wrote in a client note. “Chinese authorities are readying restructuring teams, alleviating fears of a Lehman’s-type moment.”
Beijing injected fresh cash into its financial system on Thursday, as embattled property giant Evergrande announced it would make interest payments on an onshore bond.
There has been no word yet, however, on whether it also made coupon payments on dollar bonds due that day, with more due next week. –Agencies