SINGAPORE: The dollar was on the defensive on Thursday, facing headwinds from a dip in U.S. 10-year bond yields, while commodity-linked currencies were bolstered by this week’s rally in metal and oil prices.

“Bond yields have pulled back from their peaks and the dollar is trading with a soft tone,” said Satoshi Okagawa, senior global markets analyst at Sumitomo Mitsui Banking Corporation in Singapore, referring to a pullback in U.S. 10-year Treasury yields.

The euro edged up 0.1 percent to $1.1902, having set a 3-1/2 week high of $1.1911 on Wednesday.

Against the yen, the dollar eased 0.2 percent to 113.19 yen, staying below a four-week high of 113.75 yen touched on Dec. 12.

Currencies of commodities exporters remained firm, in the wake of this week’s rise in oil prices to 2-1/2 year highs and a surge in copper prices to four-year peaks.

The Australian dollar touched a fresh two-month high of $0.7780 on Thursday, having gained 0.8 percent so far this week.

The Canadian dollar last stood at C$1.2639. On Wednesday, the loonie had touched a three-week high of C$1.2627.

A rise to levels beyond its early December high of C$1.2624 would send the Canadian dollar to its highest since late October. —Reuters