* Dollars at two-week rates
* Sterling is over $ 1.38
* Graphic: Global FX levels tmsnrt.rs/2RBWI5E
LONDON, (Reuters) – The dollar fell near two-week highs on Wednesday as demand for safer assets passed, while the Swedish crown hit record highs in a month against the euro.
Bitcoin consolidated around $ 46,500 after reaching a new high of $ 48,216 overnight after Tesla announced a $ 1.5 billion investment in the major cryptocurrency.
Ethereum virtual currency, which often moves in conjunction with bitcoin, reached $ 1,826 higher than on Wednesday before pulling back slightly. It was trading 1.1% higher at $ 1,791.
The Swedish crown strengthened to a two-month high of 10.0405 crowns per euro ahead of the Swedish central bank’s flat rate decision, picking up some of those benefits after the bank kept monetary policy unchanged on Wednesday as expected .
The dollar index moved to a two-week low of 90.299 Wednesday for the first time this month and set for a third day of losses.
Traditionally seen as a safe haven, the dollar has plummeted against major peers in hopes of financial and fiscal support, strong physical earnings and coronavirus vaccines adding to the sense of risk.
U.S. consumer price inflation figures for January are due at 1330 GMT, and along with a speech by Federal Reserve Chairman Jerome Powell there will be key events for the future direction of the dollar.
“The USD should be lower as the real US is due to the combination of clear upside price pressures, the risk of oversupply and CPI staying higher for a longer period of time, along with Fed cautiously adheres to its Average Inflation Target framework to make up for previous inflation underscores. rates remain very negative, ”said HIE’s strategists in a note to clients.
There has been a tug-of-war among traders about the impact on the dollar of President Joe Biden’s proposed $ 1.9 trillion fiscal stimulus package.
On the one hand, it is expected to speed up the U.S. recovery relative to other countries, strengthening the border currency. But on the other hand, it is a key driver in a global recapitulation statement that more risky assets should be built at the cost of the dollar.
After a strong start to the year for the green, the latest outlook appears to be recovering with U.S. jobs data last week providing the turning point, according to Westpac analysts .
“Friday’s disappointing payments completely overcame the USD, that data point casts doubt on the positive U.S. performance statement and refocused on the prospects for continued fiscal and monetary policy USA, ”they wrote in a messenger note on Wednesday.
“Missing a nursing loss, a test of 90 on the cards in the coming days,” the note said, referring to the dollar index.
The dollar lost 0.1% to 104.42 yen, with the Japanese currency hitting its highest against the green since Jan. 29.
The euro rose to $ 1.2142, adding to a three – day gain and hitting its highest level since the beginning of February.
The British pound set a three-year high of $ 1.3853.
Reciting with Ritvik Carvalho; additional statement by Kevin Buckland in Tokyo; Edited by Kim Coghill