Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Dollar shackled by doubts over U.S. recovery; bitcoin tops $47,000 for first time

Forex Feb 08, 2021 07:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. one dollar banknotes are seen in front of displayed stock graph
 
DX
-0.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
-0.34%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CMWAY
+1.16%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BTC/USD
+2.50%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Kevin Buckland

TOKYO (Reuters) - The dollar languished near its lowest in a week on Tuesday as investors began entertaining doubts about the scale of a recent rally driven by expectations of a faster pandemic recovery in the United States than elsewhere.

The spotlight remained on bitcoin as it reached a record above $47,000, building on a nearly 20% surge overnight that was the biggest since 2017, after Tesla (NASDAQ:TSLA) Inc announced a $1.5 billion investment in the digital asset.

The dollar index against a basket of major currencies has vacillated around 91 since disappointing U.S. jobs data on Friday knocked the wind out of a two-week run that had lifted it to a more than two-month high of 91.6. It last traded at 90.935.

Investors had pushed up the greenback thanks to a faster U.S. vaccine rollout relative to most other countries, and as Democrats moved to fast-track President Joe Biden's $1.9 trillion COVID-19 relief package.

Many analysts, though, see that massive fiscal spending coupled with continued ultra-easy Federal Reserve monetary policy dragging down the dollar in the longer term.

"The bottom line is a large stimulus is highly likely to pass soon, exacerbating the widening in the U.S. current account deficit, and weighing on the USD," Commonwealth Bank of Australia (OTC:CMWAY) currency analyst Joseph Capurso said in a client note.

Europe's "lagging" vaccination program will cap the euro near-term but the continent should catch up by the summer, after which the single currency could rally to $1.28 for the first time since 2014, he said.

The euro was little changed at $1.2055 in early Asian trading on Tuesday, up from the two-month low of $1.9520 touched Friday.

The dollar was mostly flat at 105.21 yen, after climbing to 105.765 at the end of last week for the first time since October.

Elsewhere, Tesla sent bitcoin surging by saying in its 2020 annual report on Monday that it had bought $1.5 billion of the world's most popular cryptocurrency as part of its broad investment policy, and that it expected to begin accepting the digital asset as payment for its products "in the near future."

"This is a turning point for how we view digital currencies," said Junichi Ishikawa, a foreign-exchange strategist at IG Securities in Tokyo.

"From here on, bitcoin will be genuinely considered as an asset available for selection by asset managers in their portfolios."

Bitcoin traded at $47,073 after pushing to a new record at$47,565.86 on Tuesday.

Rival coin ethereum changed hands at $1,746.50 after reaching an unprecedented $1,784.85 on Monday.

========================================================

Currency bid prices at 9:15AM (015 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar $1.2054 $1.2050 +0.03% -1.34% +1.2055 +1.2049

Dollar/Yen 105.1720 105.2100 +0.00% +1.86% +105.2470 +0.0000

Euro/Yen 126.78 126.78 +0.00% -0.11% +126.8300 +126.7500

Dollar/Swiss 0.8985 0.8989 -0.03% +1.57% +0.8990 +0.8986

Sterling/Dollar 1.3744 1.3742 +0.04% +0.62% +1.3744 +1.3739

Dollar/Canadian 1.2736 1.2740 +0.00% +0.05% +1.2740 +1.2736

Aussie/Dollar 0.7707 0.7704 +0.05% +0.20% +0.7708 +0.7701

NZ 0.7226 0.7220 +0.12% +0.67% +0.7228 +0.7219

Dollar/Dollar

All spots

Tokyo spots

Europe spots

Volatilities

Tokyo Forex market info from BOJ

Dollar shackled by doubts over U.S. recovery; bitcoin tops $47,000 for first time
 

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.
Comments (5)
John Smit
John Smit Feb 08, 2021 11:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He had 1 job to do, and could have re-read his article before posting: EUR/USD @ 1.9520. Amazing!  The euro was little changed at $1.2055 in early Asian trading on Tuesday, up from the two-month low of $1.9520 touched Friday.
Red Riley
Red Riley Feb 08, 2021 10:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Joe b has the plan. just wait and see
Casador Del Oso
Casador Del Oso Feb 08, 2021 10:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Very scary that virus variants are now taking hold. Recovery could be delayed much longer.
Liam Andrade
Liam Andrade Feb 08, 2021 10:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This was always the plan. They knew.
The Chad Bull
The Chad Bull Feb 08, 2021 9:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dollar is ded
Luis Angulo
Luis Angulo Feb 08, 2021 8:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The end of the fiat kingdom. Free the currency from the corrupt politicians
 
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
Continue with Google
or
Sign up with Email