The dollar rose broadly on Wednesday and stood near a two-week high against its major peers, underpinned by a confluence of factors including elevated U.S. Treasury yields and a cautious turn in risk sentiment that weighed on Wall Street.

Trading was thinned in Asia with Japan out on a holiday, and with investors still returning from an extended New Year break, currencies traded mostly sideways in early deals.

However, the New Zealand dollar , often used as a proxy for risk appetite, slid to a two-week low of $0.62485.

The Australian dollar likewise hit a two-week trough of $0.6756.

The U.S. currency was broadly firm, enjoying some respite after having fallen 2% last month and clocking its first yearly loss since 2020.

The euro was last at $1.0949 after having lost 0.95% on Tuesday, its largest daily decline since July last year.

Sterling similarly wobbled near a three-week low and changed hands at $1.2630, having slid 0.87% in the previous session, its sharpest daily fall in nearly three months.

The dollar index hovered near a two-week peak and was last at 102.15 after having jumped 0.86% on Tuesday, which marked its best daily performance since March 2023.

The greenback was underpinned by a rebound in U.S. Treasury yields, which saw the benchmark 10-year yield hitting an over two-week high in the previous session.

Source : Reuters