The dollar traded close to a six-week low against its peers
The U.S. dollar traded close to a six-week low versus its peers on April 20. Meanwhile, U.S. bond yields have hovered below a 14-month high reached last month, lessening the dollar’s yield attraction.
The euro surged to $1.2038 and hit a six-week high of $1.2048 on Monday. Meanwhile, the British sterling increased 1% overnight, its second-biggest daily gain in 2021, and last stood at $1.3989.
According to some analysts, support for the euro likely came from the announcement that the EU has secured a further 100 million doses of coronavirus vaccine by BioNTech and Pfizer.
The U.S. dollar index declined by 2% to 91.085
The U.S. dollar index fell to 91.085, having lost 2.5% from its five-month peak hit in March.
Notably, the moves are the reverse of what was happening in the first three months of 2021 when the greenback boosted against the very same major currencies as yields rose on U.S. Treasuries and offered higher returns on the U.S. dollar.
The greenback dropped to as low as 107.975 against the yen, its weakest in more than six weeks. Remarkably, it last traded at 108.15.
The 10-year U.S. Treasuries yield declined to a one-month low of 1.529% last week. Although it boosted to 1.605% by Monday it stood well below its March top of 1.776% when investors speculated the Federal Reserve could tone down its dovish policy guidance.
The risk-sensitive currency Australian dollar held firm at $0.7769 after reaching a one-month high of $0.7784 on Monday. The offshore Chinese yuan stood at 6.5075 per dollar, near its highest level in almost one month.
The yellow metal also boosted to a 7-week high of $1,790 per ounce on Monday and last traded at $1,770.6.
Meanwhile, the most popular cryptocurrency, Bitcoin, declined by 1.5% and stood at $54,122. Bitcoin hit an all-time high in the previous month. However, it sharply declined in the last few days.
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