Dollar down

SINGAPORE: The dollar slid to three-year lows against a basket of major peers on Wednesday, pressured by simmering concerns that the U.S. currency´s yield advantage will start to erode as major central banks head toward unwinding their massive stimulus.

The dollar index , which measures the greenback´s value against a basket of six major currencies, fell below the 90.00 threshold for the first time since December 2014. It was last down 0.2 percent at 89.935. The dollar fell broadly, with the euro hitting a fresh three-year peak, while sterling rose to its highest level since Britain´s June 2016 vote to leave the European Union. Against the yen, the dollar fell below the 110 threshold for the first time in four months.

The yen has gained a lift in recent weeks, after the Bank of Japan trimmed its buying of long-dated government bonds in market operations earlier this month, sparking speculation of an eventual exit from its large stimulus. Analysts said such speculation continued to support the yen, even after BoJ Governor Haruhiko Kuroda on Tuesday stressed the importance of patiently continuing with powerful monetary easing. "The dilemma here for the Bank of Japan is how do they temper investor expectations?" said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.