Dollar stabilises in Asia

The dollar stabilised on Wednesday after a spike in US Treasury yields helped it recover from a sharp loss against the euro in a yo-yo session the previous day marked by thin year-end flows. The Swiss franc held near a record high against the euro and the dollar as investors sought refuge from eurozone debt, while the dollar threatened to break below a familiar range against the yen, another currency that tends to gain from risk-aversion.
The dollar index, which tracks the greenback's performance against a basket of major currencies, was slightly easier on the day at 80.29, though it still held above Tuesday's low of 79.596. The euro stood at $1.3130 after a whipsaw move on Tuesday that took it to $1.3275, its best level since December 17.
Although it slipped from that high, it held above its 200-day moving average, now at $1.3086, which has served as a strong support for more than a week. The euro remained near a record low against Swiss franc, a safe-haven currency that has attracted funds escaping eurozone debts on worries that some euro one countries could face severe financing problems.
The euro fetched 1.2495 francs, barely above a record low of 1.2440 francs set a week ago. The franc also held not far from a record high against the dollar. The US currency traded at $0.9520 after hitting an all-time low around $0.9437 on Tuesday.
The yen, which tends to be favoured when investors grow risk-averse, was also supported after having hit a 6-week high against the dollar and a near two-year high against the British pound on Tuesday. On Wednesday, the dollar slipped 0.2 percent to 82.20 yen, off Tuesday's low of 81.81 yen. But in a major bearish sign it dropped below the bottom of the daily ichimoku chart at 82.39.
The Aussie stayed within sight of re-testing a 28-year peak of $1.0182 set in November, standing at $1.0100. It rose as high as $1.0153 on Tuesday. The Canadian dollar also stayed near its April high, a break of which would push it to a level not seen for 2 1/2 years. The US dollar slipped 0.1 percent to C$1.0001, not far from C$0.9931 hit in April.