Connect with us

Business

Dollar in doldrums as recovery optimism flourishes

Avatar

Published

on


SINGAPORE (Reuters) – The US dollar was tied up on Tuesday, as vaccine optimism propelled the British pound to an almost three-year high, as higher oil prices and dynamic expectations of the global recovery supported currencies exposed to commodities and trade.

FILE PHOTO: US dollar bills are seen in front of the stock chart displayed in this illustration taken February 8, 2021. REUTERS / Dado Ruvic / Illustration

In trade thinned by the Lunar New Year holiday in China and Monday holidays in the United States, the positive mood also weighed on the safe haven yen which made a weeklong low on the dollar overnight and fell over two years on the euro and the Australian.

The US dollar index, which measures the dollar against a basket of six major currencies, sat at 90.351, not far above the two-week low it hit last Wednesday.

The Chinese yuan, the preferred vehicle for playing on the dollar’s weakness in Asia, was on the verge of strengthening beyond 6.4 per dollar for the first time since mid-2018 and was last at 6.4033 in offshore trading.

The risk-sensitive Australian dollar held close to Monday’s one-month high at $ 0.7785.

The dollar tends to underperform when you see this overall positive sentiment in the markets, said Rodrigo Catril, senior currency strategist at National Australia Bank in Sydney.

There are also inflationary pressures particularly from energy prices, he said, which pushes up nominal yields – adding another weight to the yen as it can attract inflows from Japan – all by keeping real Treasury yields stable.

Bitcoin has hovered just below $ 50,000 as profit taking halted the cryptocurrency’s steep rally which has lifted it by over 60% in 2021 so far.

The yield on benchmark ten-year US Treasuries jumped five basis points to 1.2501% at the start of Asian trade on Monday, as most major currencies were flat.

The British pound, which topped $ 1.39 for the first time in nearly three years on Monday, held steady at $ 1.3912. It also remained stable at 87.15 pence to the euro, its highest level since May 2020.

The pound sterling gained up to 2.5% against the dollar in less than two weeks, as the aggressive roll-out of the UK’s COVID-19 vaccination program has raised hopes that its economy will be able to recover more faster than its European peers.

The euro held steady at $ 1.2132 on Tuesday while the yen, which has fallen 2% so far this year, has groomed losses to 105.36 per dollar. The yen also hit its lowest since late 2018 against the euro and the Australian dollar, and hit a three-year low against the Swiss franc.

The yen was the worst performing currency of 2021, with its negative correlation with U.S. Treasury bill yields proving to be the main dragging down factor, Francesco Pesole, currency strategist at Dutch bank ING, said in a note to clients.

If we add weak demand for safe haven as the global recovery accelerates, a further reduction in net yen long positions could be considered.

On Tuesday, investors look to eurozone growth estimates, a survey of German sentiment and U.S. manufacturing data to gauge the relative pace of the global pandemic’s recovery.

Reporting by Tom Westbrook; Editing by Sam Holmes

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]