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Dollar stabilizes near seven-week low

Schedule dollar index at intervals of 60 minutes

The dollar stabilized on Tuesday amid a combination of gains and losses against major currencies as interest rates in the United States hovered in a narrow range and vaccination prospects in Europe improved.

After reaching its lowest level in nearly seven weeks in Asian trading, the dollar index stabilized in Europe and remained unchanged in New York morning at 91.0160, down 0.02%.

The euro rose 0.15% to $ 1.2053, while the British pound fell 0.12% to $ 1.397 after rising 1% on Monday.

The dollar fell in April as US bond yields slipped from 14-month highs of 1.776% last month. The depreciation of the currency and yields indicated that the Federal Reserve will be slower to tighten monetary policy than the market thought, analysts say.

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The yield on 10-year Treasuries on Tuesday traded in a narrow range of about 1.60%.

According to Mazen Issa, senior currency strategist at TD Securities, foreign exchange and interest rate markets may remain relatively calm for several more weeks as the Fed and the European Central Bank are in no rush to adjust their interest rate policies.

“There really isn’t a strong catalyst in either direction this month that really knocks us out of our current range,” Mazen said.

Some positive for the euro was sparked by the announcement that the European Union has received an additional 100 million doses of the COVID-19 vaccine produced by BioNTech and Pfizer.

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Vaccine news suggests that the pace of Europe’s recovery from the pandemic will begin to catch up with the United States, with its history of faster growth, Issa said.

“The foreign exchange market is moving away from this idea of ​​total US exclusivity and is now in a more uncertain state,” he said.

Against the Japanese yen, the dollar jumped to 108.822 after falling below 108 for the first time since March 5.

The Norwegian krone, pegged to commodities, hit its highest level since 2018 against the dollar and also hit its highest level since January 2020 against the euro.

Bitcoin is up less than 1% to trade around $ 56,138 on Tuesday morning.

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