Dollar firm

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TOKYO: The dollar held firm on Wednesday, having rebounded from 6-1/2-month lows against its major peers helped by a rise in U.S. Treasury yields, while the yuan eased after Moody´s cut its sovereign rating on China due to concerns over the country´s soaring debt.

The dollar index held steady against a basket of six currencies at 97.321 after bouncing 0.4 percent the previous day.

It managed to pull away from the 96.797 level plumbed on Monday, its lowest since Nov. 9, when concerns over U.S. politics stemming from the Trump election campaign´s suspected links with Russia took a toll on the greenback.

The dollar was boosted as U.S. debt prices fell, with the benchmark 10-year Treasury note yield climbing 3 basis points overnight and putting some distance between the one-month trough reached last week in a bond-buying flight to safety.

"The rise in Treasury yields is supporting the dollar.

It appears that speculative buying of Treasuries has run its course, with Trump concerns and geopolitical risks no longer fresh news," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.

The dollar was firm at 111.795 yen after a bounce to 111.995 yen, its highest in a week.