The dollar nursed broad losses early on Wednesday, having come under renewed pressure after disappointing U.S. trade data for March painted an even bleaker economic picture of the first quarter. The euro rebounded back to high levels and the same happened with the yen. Some commodity currencies also firmed as resource prices rallied, with the Australian dollar the best performer.
Asian bonds fell, joining a selloff in U.S. and European debt as oil’s recovery stoked speculation over a revival in inflation and concerns over Greece’s ability to clinch a funding deal mounted. Stocks in the region also dropped, as copper retreated and New Zealand’s dollar slid. Global bond markets have lost about $340 billion since the start of last week as investors ponder the end of a six-year rally that sent yields to record lows.
U.S. stocks opened modestly lower on Tuesday after a report showed the trade deficit soared to post-recession highs in March. The sharp widening of the trade deficit implies a steep downward revision to first-quarter growth, according to some economists.