The U.S. dollar traded close to milestone lows

According to the latest news, the U.S. dollar trades close to milestone lows. The currency headed for a weekly loss, as traders’ initial concerns at taper talk in Federal Reserve minutes ebbed. Meanwhile, the pandemic rebound increased other currencies.

On May 19, minutes from the April Fed meeting noted some committee members think that if the economy keeps improving, it is time to start discussing a plan for adjusting the pace of asset purchases.

However, the euro hit a four-month low. The American currency has declined back and, at $1.2225 per euro, is again testing major support of about $1.2345.

The U.S. dollar index is at 89.795, above a three-month low of 89.686 reached before the Fed minutes were published. The index, which gauges the dollar against six major currencies, declined by nearly 0.6% for the week so far.

The American currency was steady in Asia against the yen, trading at 108.84 having dropped around 0.5% on the week. Cryptocurrencies have witnessed some gains, as bitcoin was trading at $41,171, sitting 37% above Wednesday’s low.

Australian and New Zealand dollars trade near multi-year highs

Benchmark 10-year Treasury yields declined to 1.6340% overnight and have range-traded between about 1.5% and 1.7% for two months. All this after rising by more than 80 basis points in the first quarter of 2021.

Meanwhile, among other major currencies, moves were slight as traders await retail sales data in Australia and Purchasing Managers’ Index figures across Europe.

The risk-sensitive currencies, Australian and New Zealand dollars, which are near multi-year highs as lofty commodity prices and strong pandemic recoveries provide support, were looking to close the week broadly steady.

The New Zealand dollar last traded at $0.7198, and the Australian dollar stood at $0.7773.

The British pound is placed near its highest since 2018 as high vaccination rates support a stronger-than-anticipated economic recovery. The pound last traded steady at $1.4185.