(Corrects quote in final paragraph)
* Dollar buoyant with U.S. yields bouncing from 3-year lows
* Easing risk aversion weighs on yen, Swiss franc
* Graphic: World FX rates in 2019
By Shinichi Saoshiro
TOKYO, Aug 20 (Reuters) - The dollar held near a three-week high
on Tuesday, as expectations global economies would unleash fresh
stimulus and an improvement in appetite for riskier assets lifted
yields on U.S. government bonds.
Yields on benchmark U.S. Treasuries pulled away from three-year
lows as investors tip-toed back into riskier assets, lured by hopes
for stimulus in major economies such as Germany and China, which eased
more recent global recession fears.
Investor focus on Tuesday will shift to the first setting of
China's new lending benchmark under its recent interest rate reforms,
due at 0130 GMT.
Risk appetite in global markets has been boosted this week by the
prospect of Germany ditching its balanced budget rule to boost
spending and China's interest rate reform plan, which is expected to
lower corporate borrowing costs.
"The dollar is higher across the board, tracking the rebound
in yields. The prospect of Germany embarking on stimulus was the
turning point and the dollar has regained momentum since," said
Yukio Ishizuki, senior currency strategist at Daiwa Securities.
The greenback traded little changed at 106.620 yen following
three straight sessions of gains, having moved away from a seven-month
low near 105.000 reached last week.
Against the Swiss franc, a currency sought in times of market
turmoil and political tensions along with the yen, the dollar hovered
near a two-week high of 0.9820 franc scaled overnight.
The euro was flat at $1.1081, caught near a two-week trough of
$1.1066 set on Friday.
The Australian dollar dipped 0.1% to $0.6757 against the
broadly higher dollar.
Market focus will shift to the annual symposium of global central
bankers starting on Friday at Jackson Hole, Wyoming.
Particular focus will centre on Fed Chairman Jerome Powell's
comments on monetary policy at a time when investors widely expect the
Fed to cut rates again at its next meeting in September.
"A series of further rate cuts by the Fed has already been
priced into the dollar. So the currency could gain a fresh boost if
Powell does not sound as dovish as expected and clouds rate cut
prospects," Ishizuki at Daiwa Securities said.
(Reporting by Shinichi Saoshiro; Editing by Sam Holmes)