NEW YORK (Reuters) – Retreat Dollar To its lowest level in six weeks against major currencies today, Monday, as markets absorbed the tumbling of US Treasury yields last week after the Federal Reserve renewed its saying that any surge in inflation will likely be temporary.
The US currency was affected by the improvement in risk appetite as evidenced by the rally in global stocks to record levels.
Bitcoin stabilized after its losses on Sunday, when it declined by up to 14 percent to 51,541 dollars, which was attributed by a report to news of a blackout in China.
The dollar index, which measures the strength of the greenback against other major currencies, fell 0.57 percent to 91.096, continuing a downward trend that began on March 31.
The greenback’s decline reached its extent in early trading today, when it hit its lowest levels in several weeks against major currencies such as the Japanese Yen, Swiss Franc, Australian and New Zealand Dollars and the Euro.
The yield on US 10-year Treasury notes rose slightly to 1.6082 percent today, after falling last week to 1.5280 percent from 1.7760 percent in March.
“Indeed, the US dollar’s rally has become just a memory from the distant past, and the currency’s lackluster performance appears to be due to the divergent horizon between declining and rising US Treasury yields elsewhere,” said Valentin Marinoff, Director of Exchange Market Research at Credit Agricole.
“This is almost the opposite of what we saw in March,” he added.
The euro rose above $ 1.20 for the first time in more than six weeks, touching a peak of $ 1.2048 before retreating in morning trade in New York to $ 1.2022.
The European Central Bank will meet on Thursday amid internal divisions over the pace of bond purchases, extended COVID-19 closures and possible delays to the European Union recovery fund.
Against the Japanese currency, the dollar recorded 108.2750 yen, its lowest price since the fifth of March.
Bitcoin settled unchanged at 56 thousand and 265 dollars, after a sharp decline on Sunday.
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