The dollar rises as more and more central banks become dovish and defy low Treasury yields

TOKYO (Reuters) – The dollar rose on Thursday, as many of its peers weakened after more and more central banks chose to adopt an accommodative policy in the face of the deteriorating economic outlook.

The Reserve Bank of New Zealand (RBNZ) has recently given way to lower prices, adding to the list of central banks that have become dovish.

The dollar index versus a basket of six major currencies was up 0.17% to 96.942 and was heading toward its third day of gains.

With many of his peers on the defensive, the dollar was able to offset a decline in benchmark US Treasury yields to lower levels in 15 months.

"Treasury yields are indeed lower. But that does not have much impact on the dollar, as Treasury yields remain attractive compared to those in the eurozone and now New Zealand, which has just become dovish, "said Takuya Kanda, director General of the Gaitame.Com Research Institute.

"So currencies like the Euro are dragged down by negative German yields and the New Zealand dollar, which are suffering losses and allowing the dollar to rise as well."

The euro was a little higher at $ 1.1252. The single currency lost another 0.45% this week as the benchmark 10-year Bund fell to its lowest level in two and a half years, down 0.09%.

The rise in the euro was limited after European Central Bank President Mario Draghi said the rise in interest rates could be further delayed.

Chart: World exchange rates in 2019 tmsnrt.rs/2egbfVh

Growth-sensitive currencies have recently taken steps to counter increasing risks to the global economy, as evidenced by the collapse in US bond yields that signaled a future recession.

The New Zealand dollar fell 0.2% to $ 0.6786, which had a negative impact on the 1.6% loss recorded the day before.

The Australian dollar, which is often in sympathy for the kiwi, slipped 0.1% to 0.7077 dollar. The Reserve Bank of Australia had abandoned its tightening bias for a long time last month and the markets fell this year.

The Australian had lost nearly 0.7% Wednesday with the kiwi in free fall.

The pound lost 0.1% to 1.3172 USD after reaching 1.3143 USD earlier Thursday.

Sterling was back after an offer by British Prime Minister Theresa May to resign to have her divorce agreement signed by the European Union by parliament fails to win the main opponents of the 39; agreement.

The dollar slid 0.15% to 110.34 yen but managed to avoid a six-week low of 109.70 Monday.

The 10-year US Treasury bond yield dropped to 2.342%, its lowest level since December 2017 due to worries over a global recession and after the RBNZ took a dovish tone on interest rates .

(This story has been updated to include the full title of the speaker in paragraph 5)