TOKYO (Reuters) – The US dollar held steady on Monday after rebounding from a one-week low last week, backed by a rebound in Treasury yields to highs of more than a year, as fears in inflation they continued to burn.
Bitcoin hovered around $ 60,000 after hitting a record high of $ 61,781.83 over the weekend. Reuters reported on Monday that India will push through a proposal to ban cryptocurrencies, in a possible blow for millions of investors accumulating in the hot-selling asset class.
The green dollar rose 0.1% against the yen to 109,125 yen, nearing a high since June 2020. The euro rose sharply to $ 1.19485 after having risen last week for the first time in three weeks.
Market participants have been cautious in recent weeks that the massive fiscal stimulus and accumulated consumer demand could lead to a jump in inflation, as expanding vaccination campaigns end the blockades.
“The basic scenario is that you see the economic recovery continuing and the launch of the vaccine continuing and the infection situation improving,” said Masafumi Yamamoto, currency strategist at Mizuho Securities.
“Both the dollar and the Treasury yields are on an upward trend and there are no major changes in this view. The dollar is especially likely to remain against the yen and the euro in the short term, but does not necessarily strengthen against commodity currencies because commodity prices are rising ”.
U.S. production prices had their biggest annual increase in nearly 2-1 / 2 years, according to data shown Friday, while the country’s economy is expected to get a massive shot in the arm with the package. $ 1.9 trillion stimulus from President Joe Biden.
This week will focus on the two-day policy meeting of the U.S. Federal Reserve, though expectations are slashed for the central bank to announce major policy changes. The Bank of Japan will also hold its policy meeting later in the week.
The dollar index, which tracks the U.S. currency against six major pairs, remained around 91,697 in Monday’s Asian session after rising from a nearly one-week low of 91,364 at the end from last week.
10-year Treasury benchmark yields stood at 1.6320% on Monday, near the top on Friday of 1.6420%.
The greenback has also been supported by a paring of bets on its fall, with speculators reducing net short positions to a minimum since mid-November of the week ended March 9th.
The Australian dollar, widely regarded as a liquid substitute for risk appetite, fell 0.2% to $ 0.777765, extending the 0.4% loss on Friday.
The Canadian dollar was largely flat, after strengthening to C $ 1.2455 for the first time in three years. On Friday, a larger-than-expected increase in domestic employment supported the view that the Bank of Canada would reduce quantitative easing purchases next month.
Bitcoin rose about 2% to $ 60,205.56, after more than doubling in value this year.
India’s possible ban on cryptocurrencies comes just as much as Bitcoin and its rivals gained credibility after endorsements from big investors like BlackRock Inc and corporate leaders like Tesla Inc.’s Elon Musk and Twitter Inc.’s Jack Dorsey.
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Currency bid prices at 0340 GMT
Description RIC Last USA 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 / yen 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
British Pound / 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 +1.2455
Australian / 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 points
Tokyo Stains
Spots of Europe
Volatilities
BOJ Tokyo Forex Market Information
Reports by Kevin Buckland in Tokyo and Sagarika Jaisinghani in Bengaluru; Edited by Muralikumar Anantharaman