TOKYO (Reuters) – The US dollar held on Monday after hitting a one-week low last week, backed by a rise in Treasury yields to more than one-year highs as inflation fears continue to plummet.
Bitcoin soared about $ 60,000 after rising to a record high of $ 61,781.83 over the weekend. Reuters reported on Monday that India will continue on a proposal to ban cryptocurrencies, in a possible blow to millions of investors falling into the red-hot asset class.
The greenback rose 0.1% against the yen to 109.125 yen, the highest level since June 2020. The euro was broadly equal to $ 1.19485 after rising for the first time in three weeks last week .
Market participants have become wary in recent weeks that massive fiscal stimulus and pent-up consumer demand could lead to a boost in inflation, as the expansion of vaccination campaigns could come to an end.
“The baseline scenario is that you see the economic recovery continue and that vaccination continues and the infection situation improves,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“The dollar and the treasury yields are increasing, and there is no major change in the view. The dollar is likely to rise against the yen and the euro in the short term, but it does not necessarily strengthen against the commodity currencies as commodity prices rise. ”
U.S. producer prices hit their biggest annual profit in nearly 2-1 / 2 years, the data showed Friday, while the country’s economy will get a huge chance in the arm from President Joe Biden’s $ 1.9 billion stimulus package.
This week’s focus will be on the US Federal Reserve’s two-day policy meeting, although expectations are slim that the central bank will announce major policy changes. The Bank of Japan will also hold its policy meeting later this week.
The dollar index, which tracks the US currency against six major peers, held around 91,697 during the Asia session on Monday, after climbing from a one-week low of 91,364 at the end of last week.
The standard yields for ten years Treasury yields were at 1.6320% on Monday, near Friday’s peak of 1.6420%.
The greenback is also supported by some commitment to its decline, with speculators cutting net short positions to the lowest since mid-November in the week ending March 9.
The Australian dollar – widely regarded as a liquid proxy for risk appetite – fell 0.2% to $ 0.77465, extending Friday’s loss by 0.4%.
The Canadian dollar was largely flat, rising to C $ 1.2455 for the first time in three years. On Friday, larger-than-expected domestic jobs supported the view that the Bank of Canada will reduce the quantitative easing of purchases next month.
Bitcoin rose about 2% to $ 60,205.56 after more than doubling this year.
India’s potential ban on cryptocurrencies comes just as bitcoin and its competitors gained credibility through notes from major investors such as BlackRock Inc and corporate leaders, including Eles Musk, Tesla Inc, and Jack Dorsey of Twitter Inc.
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Exchange rates at 0340 GMT
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
Previous change
Session
Euro / dollar $ 1,1953 $ 1,1953 -0,01% -2,18% +1,1968 +1,1943
Dollar / Jen 109.1250 109.0200 + 0.14% + 5.69% +109.1900 +108.9300
Euro / Yen 130.43 130.29 + 0.11% + 2.77% +130.4500 +130.2800
Dollar / Swiss 0.9290 0.9296 -0.04% + 5.04% +0.9298 +0.9278
Sterling / dollar 1.3926 1.3970 -0.32% + 1.93% +1.3948 +1.3919
Dollar / Canadian 1.2476 1.2475 + 0.05% -1.99% +1.2480 +1.2445
Aussie / Dollar 0.7748 0.7758 -0.14% + 0.71% +0.7775 +0.7744
NZ 0.7198 0.7177 + 0.29% + 0.24% +0.7216 +0.7180
Dollar / dollar
All columns
Tokyo College
Europe College
Volatility
Tokyo Forex Market Information from BOJ
Reporting by Kevin Buckland in Tokyo and Sagarika Jaisinghani in Bengaluru; Edited by Muralikumar Anantharaman