Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar dips to four-week low as yields pull back; rouble sinks

EconomyApr 15, 2021 04:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A U.S. Dollar banknote

By Ritvik Carvalho

LONDON (Reuters) - The U.S. dollar sank to a four-week low against other major currencies on Thursday as Treasury yields pulled back from last month's surge, with investors increasingly convinced the Federal Reserve will keep interest rates low for some time.

The Russian rouble sank more than 1% to 76.65 per dollar on reports the U.S. will announce sanctions on Russia as soon as Thursday for alleged election interference and malicious cyber activity.

The dollar index, which tracks the it against six other currencies, dipped to its lowest since March 18 at 91.535 in the European session before recovering to be basically flat at 91.590.

The euro rose as high as a four-week top of $1.1990, matching the highest level since March 4, before trading little changed at $1.19735.

The dollar changed hands at 108.87 yen, after hitting a three-week low of 108.755 on Wednesday.

"Following the muted USD reaction to the March inflation numbers earlier in the week, it seems that the positive U.S. inflation and growth stories are now largely priced into USD," said ING's chief EMEA FX and IR strategist Petr Krpata.

"Hence, the positive impact on USD may be limited and with U.S. Treasury yields well behaved, the solid U.S. data may support G10 pro-cyclical FX today."

Ten-year U.S. bond yields eased to 1.6165% in European trade, down from a 14-month peak of 1.776% reached in late March, reducing the dollar's yield attraction.

Repeated assurances from Fed officials that they will keep interest rates low have helped stabilise U.S. bonds, especially at the short end of the market.

Meanwhile, stocks have marched higher, with the S&P 500 setting records this week.

"Risk sentiment is improving," dragging on bond yields and the dollar, said Osamu Takashima, chief currency strategist at Citigroup (NYSE:C) Global Markets Japan.

"I believe the dollar weakening trend could continue," with a move toward 108 yen and $1.205 per euro in the near term, he said.

Fed Chair Jerome Powell said on Wednesday that in time the U.S. central bank would reduce its monthly bond purchases before it committed to an interest rate increase, a scenario many investors had regarded as a given.

A weaker U.S. dollar also saw commodity currencies supported. The Australian dollar rose as high as $0.7754 on Thursday for the first time since March 23, following a 1% rally the day before that saw it break out of its tight trading band over the past few weeks.

The New Zealand dollar also rose to a three-week high of $0.7174.

"When economic data is strong and the Fed is not turning hawkish, we could see risk-sensitive currencies gaining against both the dollar and the yen," said Yujiro Goto, currency strategist at Nomura Securities.

Thursday is busy with U.S. data, including retail sales readings for March and weekly jobless figures due at 1230GMT.

Bitcoin stood near the record high of $64,895.22 reached on Wednesday, when cryptocurrency platform Coinbase made its debut in Nasdaq in a direct listing. The world's most popular digital token last changed hands around $63,250.

After volatile trading, the stock closed at $328.28, which gave the firm a market capitalisation of $65.39 billion, about the same as New York Stock Exchange owner Intercontinental Exchange (NYSE:ICE) Inc.

Dollar dips to four-week low as yields pull back; rouble sinks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email