The dollar stabilized, while Treasury yields declined
The U.S. dollar stabilized close to a two-week low against a basket of its peers. Furthermore, Treasury yields dipped despite signs of a strong U.S. economic recovery.
The dollar index declined to 92.527 in the Asian session, its lowest since March 25. The softer turn comes less than a week after reaching an almost five-month top at 93.439.
Meanwhile, the yen recovered from a more than one-year low close to 111 per dollar, briefly strengthening back below 110 on April 6.
The euro continued its rise from a nearly five-month low close to $1.17 to trade as high as $1.1821.
The American currency has surged strongly this year, along with Treasury yields, as investors bet on a faster U.S. pandemic recovery than other developed nations. However, the greenback’s decline this week may indicate that much of the bullish outlook is priced in for now.
Moreover, Benchmark 10-year Treasury yields resumed their retreat Tuesday, dropping below 1.7% early in the Asian session. Last week it stood at 1.776%, a level unseen since January 2020. Significantly, the robust economic outlook boosted U.S. stocks to record highs.
The Aussie fell to $0.76415, while sterling rose to $1.3915
Additionally, the risk-sensitive currency, the Australian dollar, declined slightly to $0.76415 after rallying 0.8% to start the week. The Reserve Bank of Australia left policy intact on Tuesday, as anticipated. The British sterling boosted to a two-and-a-half-week high of $1.3915 in Asia, building on the previous session’s 0.6% increase.
The world’s largest cryptocurrency, Bitcoin, traded around $58,882 on April 6, easing back a little after a two-day increase. As we remember, Bitcoin hit an all-time high of $61,781.83 in the previous month.
According to data from CoinGecko and Blockfolio, the cryptocurrency market cap reached a lifetime high of $2 trillion in the previous session. The rally was driven by gains over the last several months that attracted demand from insisutional and retail investors.