TOKYO (Reuters) – The dollar rose from a three-year low against its big rivals on Thursday, boosted by higher U.S. yields, while President Joe Biden, who Chosen by the president preparing to draft a massive stimulus plan
The dollar index took a profit on Wednesday in early Asian trade as investors continued to ease downward bets. The dollar rose in four of the past five trading sessions as expectations of more stimulus hitting U.S. Treasury bonds, delivering Treasury yields above 1% for the first time since. March
Bitcoin also made a profit of 10% on Wednesday as it rebounded after sliding nearly $ 12,000 from an all-time high of $ 42,000 last week.
Biden will provide details on Thursday on a plan for “trillion” dollars in relief from the outbreak. The 10-year bond yield began after CNN reported the package would be around $ 2 trillion, adding support for the dollar.
However, many analysts expect the currency bounce to be temporary as the build-up of the dollar’s position will be shaken.
In the long term, they expect more U.S. stimulus to support risk sentiment, giving weight to the dollar, which is normally considered a hideout.
“I think positioning in risky assets is worrying, so there could be a short-term squeeze of the dollar,” said Shusuke Yamada, chief FX strategist at Bank of America in Tokyo.
“I’m focusing on the gradual dollar weakness in 2021.”
FX speculators took the dollar in mid-March as rising investor demand for riskier assets weighed on demand for the dollar.
The dollar index rose 0.1% to 90.431 after an overnight gain of 0.3%. It dropped as low as 89.206 on Jan. 6 for the first time since March 2018.
The euro fell 0.1 percent to $ 1.21405 after sliding 0.4 percent on Wednesday.
The dollar rose 0.2% to 104.075 yen, a 0.1% gain previously.
Bitcoin was little changed at $ 37,420 on Thursday, up from a low of $ 30,261.13 on Jan. 11.
Interest in cryptocurrencies has soared rapidly as institutional investors begin to buy heavily, seeing it both as a hedge against inflation and when it comes to profit if it becomes more widely adopted.
Seth Melamed, Tokyo’s chief operating officer, said that “the rapidly spike in sales was largely driven by the futures market,” with too much expansion in positions and a margin call. As a result, the Bitcoin price dropped, said Tokyo Chief Operating Officer Seth Melamed. Of Liquid cryptocurrency exchange
“In the fresh market, you can see this consistent purchase rhythm.”
Reporting by Kevin Buckland; Compiled by Ana Nicolaci da Costa and Simon Cameron-Moore.