US dollar trades near lows, down by 3pc since March

Business | 27 Apr 2021 10:04 am

The US dollar hovered near multi-week lows versus major peers on Tuesday, weighed by subdued Treasury yields, as investors consolidated positions ahead of the Federal Reserve's policy decision this week, Reuters reports.

The safe-haven greenback was also out of favor after world stocks started the week hitting a record high, amid increasing investor confidence in a rapid global recovery from the pandemic.

In cryptocurrencies, bitcoin traded around US$54,000 following a 10 percent surge on Monday, driven by reports that JPMorgan Chase is planning to offer a managed bitcoin fund.

That snapped a five-day losing streak that took the digital token to the cusp of US$47,000, with losses accelerating amid worries about U.S. President Joe Biden's plan to raise capital gains taxes.

The dollar index, which tracks the U.S. currency against six peers, was little changed at 90.859 early in the Asian session, after dipping to the lowest since March 3 overnight at 90.679.

The dollar has fallen by nearly 3 percent since late March as U.S. Treasury yields traded in narrow ranges after retreating from a 14-month high of 1.7760 percent, slashing the currency's yield appeal.

The benchmark 10-year Treasury yield was around 1.58 percent on Tuesday, tracking sideways since sliding to a one-month low of 1.52 percent in the middle of this month.

The euro slipped by 0.1 percent at US$1.2078, but remained close to the one-month high of US$1.2117 reached Monday.

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