Dollar eases as Fed clues awaited; bitcoin hits 2-year high
The dollar index - which measures the currency against six major peers, including the euro and yen - eased 0.07 per cent to 103.79 in early Asian trading, bringing it closer to the bottom of the 103.43-104.97 range of the past month.
The U.S. dollar drifted weaker on Monday, pressured by lower Treasury yields, as traders waited for more crucial economic data for fresh clues on the timing of Federal Reserve interest rate cuts.
Bitcoin rose to a more than two-year peak amid big flows into cryptocurrency exchange-traded funds.
The euro was firm following Friday's 0.33 per cent advance, with a European Central Bank policy decision looming on Thursday.
The yen stuck near the closely watched 150 per dollar level, as investors tried to assess whether the Bank of Japan's exit from its negative interest rate policy could happen as soon as this month.
The dollar index - which measures the currency against six major peers, including the euro and yen - eased 0.07 per cent to 103.79 in early Asian trading, bringing it closer to the bottom of the 103.43-104.97 range of the past month.
The index lost 0.26 per cent on Friday following some weak manufacturing and construction spending data.
That also weighed on Treasury yields, removing additional support for the dollar, with the benchmark 10-year yield sliding as low as 4.178 per cent for the first time in two weeks. The yield stood around 4.19 per cent on Monday.
"Bias appears to be swinging towards a test of range support," in the lead up to key macro releases this week, as well as Fed Chair Jerome Powell's annual testimony to Congress, Westpac strategists wrote in a client note.
"However, markets will need a major shift in data to suggest that range support will be anything other than another buying opportunity," that will keep the dollar index within its current range, the note said.
This week brings manufacturing and services ISM readings on Tuesday, with the main event on Friday in the form of monthly payrolls figures.
Meanwhile, the dollar declined 0.09 per cent to 149.99 yen, as traders assessed cautious comments from BOJ Governor Kazuo Ueda from late last week that it was too early to conclude that the central bank's inflation target is close to being met.
That contrasted with hawkish remarks from BOJ board member Hajime Takata earlier the same day, that had sent the yen to a more than two-week high of 149.21 per dollar.
Markets are weighing whether the BOJ will end its negative interest policy at its March 18-19 meeting, or wait until April or later.
Elsewhere, the euro was little changed at $1.08425, sitting near the top of its recent range.
Most economists expect the ECB will first cut rates at its June meeting, but will be hoping for additional clues on the timing from central bank head Christine Lagarde's press conference.
Bitcoin was last trading about 1.5 per cent higher from Sunday at $63,500, after earlier reaching $64,284.75, the firmest since November of 2021, the same month it marked its record high of $68,999.99.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI Senior Citizen FD Rate: Here's what State Bank of India giving on 1-year, 3-year, 5-year fixed deposits currently
Fundamental picks by brokerage: These 3 largecap, 2 midcap stocks can give up to 28% return - Check targets
SIP+SWP: Rs 10,000 monthly SIP for 20 years, Rs 25 lakh lump sum investment, then Rs 2.15 lakh monthly income for 25 years; see expert calculations
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
Top 7 Mutual Funds With Highest Returns in 10 Years: Rs 10 lakh investment in No 1 scheme has turned into Rs 79,46,160 in 10 years
Tamil Nadu Weather Alert: Chennai may receive heavy rains; IMD issues yellow & orange alerts in these districts
07:25 AM IST