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 Up but at Seven-Week Low as U.S. Bond Yields Soften

ForexApr 21, 2021 12:43AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar inched up on Wednesday morning in Asia but remained near multi-week lows as subdued U.S. bond yields also diminished the U.S. currency’s yield appeal.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.01% to 91.40 at 12:37 AM ET (4:37 AM GMT) but was at a seven-week low.

The USD/JPY pair inched up 0.01% to 108.09.

The AUD/USD pair edged down 0.16% to 0.7711 and the NZD/USD pair inched down 0.07% to 0.7168.

The USD/CNY pair inched up 0.02% to 6.4493 while the GBP/USD pair edged down 0.11% to 1.3920.

The dollar did get some support, however, as global shares pulled back from record highs as COVID-19 numbers continue to soar globally and put paid to expectations of a quick economic recovery.

The dollar index "has broken down through a key short-term support level at 91.30 and can see further downside to the low 90s," with the euro rising to around $1.22, Westpac analysts in a note.

"We were looking for the [index] to top in the third quarter when second derivative U.S. rebound measures crest and Europe gets her vax act together, but the early indications are that vaccinations across Europe are picking up pace already," the note added.

The euro traded at $1.2039, after climbing to a seven-week high of $1.2079 during the previous session. The European Union’s procurement of an additional 100 million doses of the COVID-19 vaccine produced by BioNTech SE (F:22UAy) and Pfizer Inc. (NYSE:PFE) also lent support to the single currency.

The European Central Bank is also due to hand down its policy decision on Thursday.

Investors’ flight to safety also boosted the yen, another safe-haven currency, and the Japanese currency climbed to a seven-week high against the dollar.

The benchmark 10-year Treasury yield hovered around the 1.56% mark and near its lowest level since mid-March 2021, continuing its consolidation following its retreat from a 14-month high at the end of March. Mounting evidence that the U.S. Federal Reserve will be slower in tightening monetary policy than it had appeared to the market have led to declines in U.S. yields and the dollar in April, according to some investors.

Meanwhile, surging COVID-19 numbers globally also triggered investor caution. India reported 1,761 deaths from COVID-19, a record daily toll, and there were more than 142.5 million COVID-19 cases as of Apr. 21, according to Johns Hopkins University data.

In cryptocurrencies, bitcoin was near the $56,000 mark, consolidating after it fell to as low as $51,541.16 on Sunday and after setting a record high at $64,895.22 on Apr. 14.

Dollar Up but at Seven-Week Low as U.S. Bond Yields Soften
 

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
Continue with Google
or
Sign up with Email