The dollar is globally higher in trade after the slim holidays; euro, Australian dip

TOKYO (Reuters) – The dollar has appreciated slightly against a basket of key rivals, as the Canadian dollar was supported by higher crude oil prices, as US plans to tighten export pressure Iranian from next month.

The Australian and New Zealand financial markets reopened after the long Easter holidays and are expected to reopen throughout Europe later in the day.

The dollar index against a basket of six key rivals was slightly higher, at 97.336, approaching the peak of 979 reached in 2019, early March.

The greenback has strengthened in recent weeks as US 10-year Treasury yields rise and the US economy shows signs of strength after a weak start to the year.

Overnight data showed that sales of existing homes in the United States declined more than expected in March due to supply constraints, and new home sales figures will be released later.

These may provide some indication of the state of the US economy, but the report on the gross domestic product to be released Friday should give a clearer picture.

"Investors will be looking for an increase in volatility in the coming days, as traders return to their desks and the US earnings season progresses," said Nick Twidale, Rakuten's chief operating officer. Securities Australia in Sydney.

"This week could well indicate whether the dramatic turnaround of global central banks, and in particular the Fed, has been sufficient in recent months to change the dynamics of global growth," he said in a note.

Against the yen, the dollar dropped one-tenth of a percent to 111.80 yen, returning to a record high of 112.17 last Wednesday, while staying above its 200-day moving average.

Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said he did not see a powerful driver of the greenback's downfall. He added that the move could have been triggered by a risk-reducing tone on the Japanese stock market.

Yamamoto has expected the yen's strength vis-à-vis the dollar to be temporary as long as the world's central banks refrain from normalizing the policy by raising interest rates.

"The relatively dovish tone of central banks supports risky badets," he said. "That's why the dollar / yen has been supported by the risk of trading. I think this kind of movement will continue as long as the big central banks do not move for a while. "

The Australian dollar fell 0.1% to 0.7128%, ahead of the release of first quarter inflation data expected on Wednesday.

Movements of the greenback against the euro and the pound sterling were modest. The single currency fell slightly to $ 1.1299 and sterling to $ 1.2985.

The Canadian dollar remained firm after oil prices hit record highs of nearly six months overnight following Washington's announcement of the removal of waivers next month for eight countries to buy Iranian oil without to be imposed American sanctions.

With the surge in the price of oil, one of Canada's top exports, the loonie fell slightly to $ 0.7485, which accounted for most of the gains in the previous session, more than a third of hundred.