LONDON (Reuters) – The dollar was above a three-year low against its big rivals on Thursday as expectations for President Joe Biden’s fiscal stimulus pushed for bond yields. US government goes up
The yield on the 10-year bond rose after CNN reported the stimulus package to be around $ 2 trillion, adding support for the dollar.
In European morning trading, the dollar index was little changed, rising 0.04% to 90.320 as investors waited for Biden to provide today̵7;s details on plans for a “trillion dollar” to mitigate the outbreak.
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
Expectations are running high for stimulus. But many analysts believe the spending drive has already been priced.
ING analysts said, “We feel the fiscal is gone: it will take a lot to surprise the markets after last week’s price adjustment,” said ING analysts. The references to be restarted at the back of this announcement alone are limited. ”
What’s more, the currency’s recent revival is threatened by a buildup of a bearish dollar position.
FX speculators took the dollar in mid-March as rising investor demand for riskier assets weighed on demand for the dollar.
As the U.S. stimulus supports confidence, the risk may affect the dollar, which is considered a safe haven.
The euro fell 0.05 percent to $ 1.214 after sliding 0.4 percent on Wednesday.
The dollar rose 0.13% to 104.02 yen.
Bitcoin gained 10 percent on Wednesday after moving nearly $ 12,000 from last week’s record high of $ 42,000, up 3 percent to $ 38,860 on Thursday, up from a low of $ 30,261.13 on the day. January 11
Interest in cryptocurrencies has soared considerably as institutional investors begin to buy heavily, seeing it both as a hedge against inflation and once profitable if it becomes more widely adopted.
Reporting by Kevin Buckland; Edited by Ana Nicolaci da Costa, Simon Cameron-Moore, Larry King.