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TOKYO (Reuters) – The US dollar remained firm on Monday after rebounding from a one-week low last week, supported by benchmark T-bill yields spike to more than one-year highs as inflation fears continued to fade.
Bitcoin fell to below $ 60,000 amid a Reuters report that India will push forward on a proposal to ban cryptocurrencies. It had climbed to a record high of $ 61,781.83 over the weekend.
The greenback traded near its highest since June against the Japanese yen, which tends to weaken as Treasury yields rise.
Market participants have been wary in recent weeks that massive fiscal stimulus and pent-up consumer demand could lead to higher inflation as expanding vaccination campaigns end lockdowns.
Producer prices in the United States saw their biggest annual gain in nearly 2-1 / 2 years, according to data on Friday, as the country’s economy is on the verge of getting a huge injection in the arm of President Joe Biden’s $ 1.9 trillion stimulus package.
The outlook for the already strong pace of U.S. vaccinations has also been boosted by Biden’s order for each state to make all adults eligible for vaccination by May 1.
The dollar index, which tracks the US currency against six major peers, held around 91.645 at the start of Monday’s Asia session after climbing from near a one-week low to 91.364 to the end of last week.
Benchmark 10-year Treasury yields were at 1.6282% on Monday, close to Friday’s high of 1.6420%.
The dollar was largely flat at 109.04 yen on Monday, near the nine-month high of 109.235 reached last week.
The greenback was also supported by a paration of bets for its fall, as speculators reduced net short positions to the lowest since mid-November of the week ended March 9, according to Reuters calculations and US data. Commodity Futures Trading Commission released on Friday. .
The dollar index has gained 1.8% this year, following the rise in benchmark yields of less than 1%. In 2020, the gauge fell by almost 7%.
Many analysts expect the dollar to resume this downtrend in due course.
“Higher bond yields on their own are unlikely to support the rise in the US dollar,” Commonwealth Bank of Australia analysts wrote in a research note, adding that dollar declines would come “soon.”
“The rise in bond yields largely reflects the better economic outlook, which ultimately weighs on the USD.”
The euro was virtually unchanged at $ 1.19535, consolidating just below $ 1.20 after slipping to a three-month low of $ 1.18355 last week.
The Australian dollar – widely regarded as a liquid indicator of risk appetite – edged up to $ 0.7769, offsetting part of Friday’s 0.4% loss.
The Canadian dollar was largely stable, after rising to C $ 1.2461 for the first time in three years. A larger-than-expected domestic job gain on Friday supported the idea that the Bank of Canada would cut QE purchases next month.
Bitcoin changed hands at around $ 59,940 after Reuters quoted a senior government official as saying India would propose a law banning cryptocurrencies and fining anyone trading in the country or even holding such assets. digital.
It would be one of the toughest policies in the world against scorching digital assets, and comes just as Bitcoin and its rivals are gaining credibility amid a wave of approval from big investors such as BlackRock Inc and chiefs. company, including Elon Musk of Tesla Inc and Jack Dorsey of Twitter Inc.
The value of Bitcoin has more than doubled this year, having more than quadrupled in 2020.
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Bid price for currencies at 125 GMT
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
Previous change
Session
Euro / Dollar $ 1.1959 $ 1.1953 + 0.05% -2.12% +1.1961 +1.1945
Dollar / Yen 109.0150 109.0200 + 0.04% + 5.59% +109.1320 +109.0400
Euro / Yen 130.37 130.29 + 0.06% + 2.72% +130.4300 +130.2800
Dollar / Switzerland 0.9283 0.9296 -0.15% + 4.92% +0.9296 +0.9282
Pound sterling / dollar 1.3941 1.3970 -0.19% + 2.06% +1.3943 +1.3919
Dollar / Canadian 1.2457 1.2475 -0.11% -2.14% +1.2477 +1.2458
Aussie / Dollar 0.7768 0.7758 + 0.16% + 1.01% +0.7771 +0.7750
NZ 0.7209 0.7177 + 0.46% + 0.40% + 0.7209 + 0.7180
Dollar / Dollar
All spots
Tokyo spots
Spots in Europe
Volatilities
BOJ Tokyo Forex Market Information
Reporting by Kevin Buckland; Editing by Muralikumar Anantharaman
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