TOKYO (Reuters) – The US dollar held steady on Monday after jumping from a week-long low last week, supported by an increase in Treasury benchmark earnings for more than a year, while fears of inflation remained dormant.
Bitcoin hovered around $ 60,000 after reaching a record high of $ 61,781.83 over the weekend. Reuters reported on Monday that India will pursue a proposal to ban cryptocurrencies, in a potential blow to millions of investors huddling in the rising asset class.
The US dollar rose 0.1% against the yen to 109.125 yen, oscillating close to its highest value since June 2020. The euro was practically stable at $ 1.19485, after rising last week for the first time. once in three weeks.
Market participants have been suspicious in recent weeks that the massive fiscal stimulus and pent-up consumer demand could lead to a jump in inflation as expanding vaccination campaigns lift the blockages.
“The basic scenario is that you see the economic recovery continuing and the vaccine implantation continues and the infection situation improves,” said Masafumi Yamamoto, chief exchange strategist at Mizuho Securities.
“Both the dollar and Treasury yields are in an upward trend and there is no major change in this view. The dollar is likely to steady against the yen and the euro in the short term, but it does not necessarily appreciate against commodity currencies because commodity prices are rising. “
US producer prices had their biggest annual gain in nearly two and a half years, data showed on Friday, while the country’s economy is expected to receive a major boost of cheer with the $ 1.9 trillion stimulus package from the US. President Joe Biden.
This week’s focus will be on the U.S. Federal Reserve’s two-day policy meeting, although expectations are low for the central bank to announce major policy changes. The Bank of Japan is also expected to 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 almost a week low of 91.364 at the end of last week.
The 10-year reference Treasury yields were at 1.6320% on Monday, close to Friday’s top of 1.6420%.
The dollar was also supported by a reduction in bets for its decline, with speculators reducing net short positions to the lowest level since mid-November in the week ending March 9.
The Australian dollar – widely seen as a net proxy for risk appetite – fell 0.2% to $ 0.77465, extending Friday’s 0.4% loss.
The Canadian dollar was largely stable after strengthening to C $ 1.2455 for the first time in three years. On Friday, a larger-than-expected gain in domestic jobs 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.
The potential ban on cryptocurrencies in India comes as bitcoin and its rivals gain credibility following the endorsement of major investors like BlackRock Inc and corporate leaders, including Elon Musk of Tesla Inc and Jack Dorsey of Twitter Inc.
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Currency bid prices 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 / 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
Sterling / Dollar 1.3926 1.3970 -0.32% + 1.93% +1.3948 +1.3919
Canadian / dollar 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 points
Tokyo Points
Europe Points
Volatilities
BOJ Tokyo Forex Market Information
Reporting by Kevin Buckland in Tokyo and Sagarika Jaisinghani in Bengaluru; Muralikumar Anantharaman edition