TOKYO (Reuters) – The US dollar remained steady on Monday after dropping to a one-week low last week, backed by a rise in benchmark Treasury yields to a one-year high as fears of inflation continued to burn.
Bitcoin hovered around $ 60,000, reaching a record high of $ 61,781.83 over the weekend. Reuters reported Monday that India will continue to propose a ban on cryptocurrencies, in a potential blow to millions of investors falling into the hot asset class.
The green dollar rose 0.1% against the yen to 109,125 yen, nearing its highest level since June 2020. The euro was largely fixed at $ 1.19485 after rising for the first time last week in three weeks.
Market participants have risen cautiously in recent weeks that the massive fiscal stimulus and retained consumer demand could lead to rising inflation as extended vaccination campaigns put an end to blockages.
“The basic scenario is that you see the economic recovery continuing and the launch of vaccines continues and the infection situation is improving,” said Masafumi Yamamoto, chief foreign exchange strategist at Mizuho Securities.
“Both the dollar and the treasury yield are on an upward trend and there is no big change in this outlook. The dollar will rise mainly against the yen and the euro in the short term, but it will not necessarily strengthen against commodity currencies, as commodity prices are rising. ”
US producer prices have seen their biggest annual gain in 2-1 / 2 years, data show on Friday, as the country’s economy gets a massive blow from President Joe Biden’s 1-year stimulus package. 9 trillion dollars.
This week will focus on the two-day US Federal Reserve political meeting, although expectations are low for the central bank to announce major policy changes. The Bank of Japan is also set to hold its political meeting later in the week.
The dollar index, which tracks the US against six major counterparts, remained around 91.697 in the Asian session on Monday, after rising from a nearly one-week low of 91.364 at the end of last week.
The 10-year Treasury benchmark yields stood at 1.6320% on Monday, close to Friday’s high of 1.6420%.
The green dollar was also supported by a wager on its decline, with speculators reducing net short positions to their lowest since mid-November in the week ending March 9th.
The Australian dollar – widely viewed as a liquid proxy for risk appetite – fell 0.2% to $ 0.7465, extending the 0.4% loss on Friday.
The Canadian dollar was largely flat, having previously consolidated at C $ 1.2455 for the first time in three years. On Friday, a higher-than-expected gain in the domestic market supported the view that the Bank of Canada will reduce its quantitative easing acquisitions next month.
Bitcoin rose about 2% to $ 60,205.56, after more than doubling in value this year.
India’s potential ban on cryptocurrencies comes just as Bitcoin and its rivals have gained credibility following claims from big investors such as BlackRock Inc. and corporate leaders, including Tesla Inc.’s Elon Musk and Twitter Inc.’s Jack Dorsey.
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Currency offer prices at 0340 GMT
Description RIC Latest US Closing Pct Change YTD Pct Large Amount Low Amount
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
Pound 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 +1.2455
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 stains
Spotlights in Tokyo
Spots in Europe
volatility
Information on the Tokyo foreign exchange market from BOJ
Reporting by Kevin Buckland in Tokyo and Sagarika Jaisinghani in Bengaluru; Edited by Muralikumar Anantharaman