The U.S. dollar dropped to its lowest in more than seven weeks. Euro on the other hand rallied, as investors grew more hopeful about the pace of vaccine rollout in the U.S. and Europe.
The dollar has fallen so far in April as U.S. bond yields withdrew from it used to be in last month.
Whatever happened was the reverse of what happened in the first half of the year. At that time dollar was in its full strength as U.S. Treasury yields rose.
A rise in Treasury yields offered higher returns on the greenback.
At 0728 GMT, the dollar index was down 0.1% at 90.952. During the Asian session, it reduced to a low of 90.877.
Euro, in nearly seven weeks, was at its highest – 0.3% at $1.2065. It reached this point after the key $1.20 was passed in the previous session.
According to You-Na Park-Heger, a Commerzbank strategist, the recent fall in the dollar is due to the U.S. Federal Reserve’s reassurance.
U.S. Federal Reserve assured the market that it will not end its monetary stimulus shortly. Whereas, Euro, is getting its support from the improvement in the vaccine situation in Europe.
But the situation could change rapidly – she added.
“The economic recovery in the U.S. might drive up inflation expectations further, fuelling rate hike speculation. The news situation in the euro zone in connection with corona might change again as uncertainty remains high,” she said.
Other Currencies
Talking about the Australian dollar, it strengthened to a one-month high of 0.7812. The Reserve Bank of Australia showed that the central bank expects a faster rebound from the pandemic.
At 0729 GMT it reached 0.7808, up 0.7% on the day.
Furthermore, the New Zealand dollar was up 0.6% at 0.7223.
Bitcoin was traded at around $53,700 and went down to 3.5%.
On Sunday it sank lower to $51,541.16, after hitting a high record of $64,895.22 just days before.
