TOKYO (Reuters) – The U.S. dollar held firm on Monday after kicking off a week-long low last week, backed by a spike in Finance benchmark yields to more than a year highs while fears of a -inflation increasingly moving.
Bitcoin went back to less than $ 60,000 amid a Reuters report that India will push ahead with a proposal to ban cryptocurrencies. It had risen to $ 61,781.83 higher over the weekend.
The greenback traded near its highest level since June against the Japanese yen, which tends to weaken as Treasury yields rise.
Market participants have become alarmed in recent weeks that massive fiscal stimulus and pent-up consumer demand could jump to inflation as expanding vaccine campaigns hamper lock-ins.
U.S. producer prices hit their biggest annual gain in nearly 2-1 / 2 years, data showed Friday, as the country’s economy prepares to take a big view in the arm from the $ 1.9 trillion stimulus package per capita President Joe Biden.
The outlook for the rapid pace of U.S. vaccination was also boosted by Biden’s order for all states to make all adults eligible for vaccination by May 1st.
The dollar index, which monitors U.S. currencies against six major peers, held around 91.645 early in Monday’s Asia session after climbing from a near-week low of 91.364 at the end of this week. went.
Benchmark 10-year Finance yield was 1.6282% on Monday, close to Friday’s peak of 1.6420%.
The dollar was broadly flat at 109.04 yen on Monday, close to the nine-month high of 109.235 reached last week.
The greenback has also received support from paring bets for a recession, with speculators cutting net short positions to a low from mid-November to the week ending March 9, according to calculations by Reuters and data U.S. Commodity Futures Trading Commission released Friday.
The dollar index has gained 1.8% this year, tracking the rise in benchmark yields from less than 1%. In 2020, the criterion fell by nearly 7%.
Many analysts expect the dollar to begin that decline over time.
“Higher bond yields alone are unlikely to sustain the rise in USD,” Commonwealth Bank analysts wrote in a research note, adding that the decline in dollars was imminent. soon ”.
“The higher trend in bond yields largely reflects the improved economic outlook, which ultimately weighs on the USD.”
The euro remained virtually unchanged at $ 1.19535, consolidating just below $ 1.20 after slipping to a three-month pool of $ 1.18355 last week.
The Australian dollar – widely seen as a meltdown for risk aversion – rose slightly to $ 0.7769, down some loss by 0.4% on Friday.
The Canadian dollar was relatively flat, having strengthened earlier to C $ 1.2461 for the first time in three years. On Friday, a larger-than-expected domestic jobs gain supported the view that the Bank of Canada would reduce quantitative purchases next month.
Bitcoin changed hands at around $ 59,940 after Reuters called on a senior government official as saying that India will propose a law banning cryptocurrencies and fine anyone who trading in the country or even holding such digital assets.
It would be one of the toughest policies in the world against the red-hot digital assets, and it comes just as bitcoin and its competitors have gained credibility amid a wave of confirmation from major investors such as BlackRock Inc and corporate executives including Tesla Inc.’s Elon Musk. Jack Dorsey on Twitter Inc.
Bitcoin has more than doubled in value this year, after more than quadrupling in 2020.
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Cash offer prices at 125 GMT
RIC Description 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
Sterling / Dollar 1.3941 1.3970 -0.19% + 2.06% +1.3943 +1.3919
Dollar / Canada 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
Dollars / Dollars
All spots
Spotan Tokyo
Europe spots
Vulnerability
Tokyo Forex market information from BOJ
Reciting with Kevin Buckland; Edited by Muralikumar Anantharaman