Early trade in New York: Dollar mixed against major peers

NEW YORK: The dollar was mixed against major peers on Tuesday, gaining against the yen and commodity currencies, with investors biding time ahead of a policy decision by the US Federal Reserve on Wednesday.

The yen, on the other hand, hardly budged after the Bank of Japan kept its policy on hold.

In midday trading, the dollar index, which tracks the US currency against six peers, was flat at 90.912, after dipping to the lowest since March 3 overnight at 90.679.

The dollar added 0.4% to 108.50 yen, another haven currency, continuing its rise from the seven-week low of 107.48 reached Friday.

The dollar has fallen nearly 3% since late March as US Treasury yields traded in narrow ranges after retreating from a 14-month high of 1.7760%, slashing the currency’s yield appeal.

The euro was slightly down at $1.2078, but not far from the two-month high of $1.2117 reached Monday.

The commodity-linked Australian dollar, a barometer of risk appetite, eased 0.4% to US$0.7771, after a 0.7% rally overnight that took it just shy of a five-week peak.

The offshore Chinese yuan retreated 0.1% to 6.4789, after rising to a seven-week top of 6.4710 per dollar on Monday.

In cryptocurrencies, bitcoin hit a high of $55,354.59, following a 10% surge on Monday, driven by reports that JPMorgan Chase is planning to offer a managed bitcoin fund.