TOKYO (Reuters) – The dollar picked up the biggest gain in more than two months against major peers on Friday as a rise in U.S. yields led to some bearish bets betting on the currency frontier.
The greenback broke low in nearly three years, with traders taking profits against the euro in particular, after the dollar index slipped by nearly 7% in 2020 and as much as 0.9% in the year. new year amid expectations for U.S. fiscal stimulus. .
Democrats gained effective control of the Senate this week, allowing President Joe Biden to push through increased spending, which analysts say will be negative for bonds and the dollar .
Finance’s 10-year benchmark yield rose 1% on Wednesday for the first time since March.
The dollar position is “stretched and U.S. yields are backed by some nervous investors,” TD Securities analysts wrote in a messenger note.
“The move (dollar), however, is stronger in tone than a sign of greater correction.”
Investors are now waiting for U.S. nonfarm payouts later Friday to know if much more stimulus is needed to keep the economic recovery alive.
The dollar index remained largely unchanged at 89.841 in early Asian trading, after declining to an almost three-year low of 89.206 on Wednesday. It rose more than half a percent Thursday, but is still on track for a weekly decline.
The euro was broadly flat at $ 1.22685 after falling 0.5% on Thursday.
The most risky Aussie dollar remained unchanged at 77.695 U.S. cents after slipping 0.5% in the previous session.
The greenback bought 103.820 yen after gaining 0.7% to close at 103.830 in New York.
Bitcoin traded 0.2% lower at $ 39,418 after going through $ 40,000 for the first time on Thursday and going up as high as $ 40,420. The digital currency crossed the $ 20,000 milestone less than a month ago, on December 16, and has accumulated more than 700% since March.
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Cash offer prices at 9:37 AM (037 GMT)
RIC Description Last US Close Pct Change YTD Pct High Bid Low Bid
Previous change
Session
Euro / Dollar $ 1.2261 $ 1.2270 -0.07% + 0.36% +1.2272 +1.2262
Dollar / Yen 103.7750 103.8300 + 0.00% + 0.53% +103.8670 +103.8350
Euro / Yen 127.24 127.37 -0.10% + 0.25% +127.4200 +127.2700
Dollar / Switzerland 0.8854 0.8855 -0.05% + 0.04% +0.8855 +0.8851
Sterling / Dollar 1.3560 1.3565 -0.01% -0.72% +1.3571 +1.3560
Dollar / Canada 1.2684 1.2690 -0.04% -0.38% +1.2693 +1.2678
Aussie / Dollar 0.7761 0.7769 -0.08% + 0.90% +0.7772 +0.7759
NZ 0.7258 0.7256 + 0.15% + 1.20% +0.7265 +0.7253
Dollars / Dollars
All spots
Spotan Tokyo
Europe spots
Vulnerability
Tokyo Forex market information from BOJ