Dollar hovers near 4-month low, bitcoin maintains rebound –

0
7
Dollar stabilizes ahead of Fed minutes, bitcoin stumbles – fr


The dollar languished near its four-month lows against major currencies on Monday, as bets on a strong global economic recovery continued to support currencies seen as riskier.

The dollar index moved around the 90 mark, down 0.2% on the day, slightly above Friday’s four-month low of 89.646.

Since the end of March, the greenback, considered a safe haven, has been declining steadily with optimism about the recovery. But of late, that decline appears to have slowed down as traders begin to anticipate rising U.S. interest rates as the U.S. Federal Reserve reacts to signs of rising inflation.

“Markets need to start pricing a bit more hawkish Fed going forward,” Win Thin, global head of foreign exchange strategy at Brown Brothers Harriman, wrote Monday morning.

Data expected on Friday, including U.S. personal consumption and inflation figures, could lead markets to anticipate a more hawkish tone from the next Fed policy meeting on June 15-16. But for now, Thin said, “the dollar is under slight pressure at the start of the week.”

Yields on benchmark 10-year US Treasuries fell to 1.604% on Monday from 1.632% on Friday night.

As the recovery accelerates globally, strategists are now trying to anticipate how quickly yields in other countries will rise relative to the likely pace in the United States.

Traders are also monitoring the progress of a new U.S. stimulus package, after the White House slashed its infrastructure bill to $ 1.7 trillion on Friday but failed to win support from Republicans in the Senate . Read more

Among the currencies that gain against the dollar is the euro, up 0.3% to $ 1.22.

Cryptocurrencies hit back on Monday, regaining ground lost in a weekend selling episode that was fueled by further signs of Chinese crackdown on the emerging sector.

Bitcoin rebounded around 10% earlier in the day, then held around $ 38,000, recovering from a rough weekend in which it fell 17% to $ 31,107 on Sunday. Read more

Bitcoin rose nearly 30% for the year, but fell almost half from its April record high of $ 64,895. Volatility has undermined the case for its acceptance by the general public.

The catalyst for Sunday’s crisis was that cryptocurrency ‘miners’, who minted cryptocurrencies using powerful computers to solve complex mathematical puzzles, were halting Chinese operations in the face of growing scrutiny. authorities. Read more

Ether, the second largest cryptocurrency, rose 16% to $ 2,435, about half of its peak from two weeks ago.

=================================================== ======

Currency exchange at 3:18 p.m. (1918 GMT)

Our Standards: Thomson Reuters Trust Principles.

LEAVE A REPLY

Please enter your comment!
Please enter your name here