Early trade in New York: Dollar gains against major units

NEW YORK: The dollar extended gains against major currencies on Friday, hitting a more than one-week high, as investors digested a move from the Federal Reserve to lift a key bank leverage ratio that has pushed US Treasury yields off their lowest levels of the day.

The greenback in recent weeks has risen in line with higher Treasury yields. Since early January, the dollar index, a gauge of its value against six major currencies has gained about 3.3%, while the benchmark US 10-year note has climbed about 80 basis points.

The dollar index was last up 0.3% on the day at 92.138 and on track for around a half of a percent gain over the week. It had fallen sharply in the wake of the Fed’s announcement about its loose policy stance on Wednesday.

The euro dipped 0.3% at $1.188 0, giving up early gains versus the dollar amid concerns about further coronavirus lockdowns in Europe, after France imposed a new four-week lockdown from Friday in 16 regions badly hit by the health crisis.

The yen was roughly flat at 108.93 Yen after the Bank of Japan widened its target band for the benchmark yield in a decision that was in line with market expectations.

In the cryptocurrency market, bitcoin traded 1.2% higher at around $58,382 after briefly topping $60,000 again the previous day.