TOKYO (Reuters) – The dollar was trading near two-week levels as demand for safer assets ebbed Wednesday, with traders looking forward to an expected recovery from the COVID-19 pandemic this year, driven by fiscal stimulus and big money.
Bitcoin consolidated around $ 46,500 after reaching a new high at $ 48,216 overnight after Tesla announced a $ 1.5 billion investment in the major cryptocurrency.
“The economic situation for the year, according to a market consensus, appears to be bullish,” said Michael McCarthy, chief strategist at CMC Markets in Sydney, pointing to the weakest dollar.
“The mood and position of the market are currently leading the way. ”
Traditionally seen as a safe haven, the dollar has plummeted against major peers in hopes of financial and fiscal support from policymakers, strong corporate earnings and the prospect of coronavirus vaccines returning to regularity in the United States. United and elsewhere have strengthened a sense of danger.
The dollar index rose higher to 90.509 early in Wednesday ‘s Asian session, after a two – day loss that brought it as low as 90.427 for the first time this month.
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 should overcome the U.S. recovery relative to other countries, strengthening the border currency; 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 final outlook appears to be recovering – with last week’s U.S. jobs data providing the turning point, according to analysts Westpac.
“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 rose 0.1% to 104.68 yen, after dipping as low as 104.5 for the first time this month in the previous session.
The euro weakened less than 0.1% to $ 1.21105 after a three-day gain.
The British pound was around 0.1% lower at $ 1.3803 after a nearly three-year update at $ 1.382 overnight.
Edited by Jacqueline Wong