TOKYO (Reuters) – The U.S. dollar fell to a three-year low against its Australian counterpart and was pressing nearly three-year low against the British pound as progress in reducing coronavirus infections slowed. stimulating sentiment for riskier assets.
The greenback also slipped to a three-year low against the New Zealand dollar as traders sought currencies with close ties to global commodity trade as a result of an improving economic outlook.
The U.S. currency, which is often seen as a safe asset in uncertain times, is likely to fall further as more investors focus on economic recovery once the coronavirus pandemic will pass.
“Commodity currencies and the pound are particularly strong against the dollar, and this trend is likely to continue,” said Yukio Ishizuki, a foreign exchange strategy at Daiwa Securities.
“Britain’s vaccination program is making a lot of progress. Economic activity is gradually returning to normal in many areas, putting pressure on the dollar. ”
The Australian dollar hit $ 0.7892, the highest level since March 2018 while the New Zealand currency rose to $ 0.7315, the strongest level since April 2018.
The release of a vaccine will slow down risks to the Australian economy over the year, the Fitch rating agency said Monday as it maintained the country ‘s top AAA credit rating, albeit with a negative outlook.
The euro last traded at $ 1.2124
The British pound bought $ 1,4030, nearly a three-year high.
Against the yen, the dollar remained stable at 105.45
Australia on Monday kicked off their major COVID-19 vaccination program as the country watched a report with no local issues for the third straight day, which gave the Aussie a boost.
Sterling is also in focus as British Prime Minister Boris Johnson plans a way out of coronavirus locks later Monday, backed by one of the world’s fastest vaccine releases.
The dollar net short position fell last week to $ 29.09 billion, the lowest level since mid-December, according to calculations with future Trade and Revenue Commission data.
U.S. dollar net shorts have fallen for just four weeks, indicating that there are some investors who are optimistic about the green.
The Treasury’s long-term yield has been rising recently, and the United States has also responded to developing the coronavirus, which will provide little support for the dollar, Daiwa’s Ishizuki said.
In the cryptocurrency market, bitcoin grew slightly to $ 57,090, but was still near a high level as the digital asset gets more mainstream acceptance.
Ether, a cryptocurrency competitor, fell to $ 1,918.
Reciting with Stanley White; Edited by Sam Holmes