Early trade in New York: Dollar slides to multi-month lows
NEW YORK: The dollar extended its slide on Tuesday, touching its lowest level since late February, as increased risk appetite lured investors away from the safe-haven greenback.
US Treasury yields stalled as market participants grew increasingly confident that the Federal Reserve will hold off on hiking interest rates for the time being, despite worrisome near-term inflation spikes.
“We’re seeing this dollar weakness against numerous pairs and the market is starting to believe the Fed that we’re going to have low interest rates a lot longer,” said Edward Moya, senior market analyst at OANDA in New York.
The dollar index was last down 0.41% at 89.799.
The euro gained 0.51% to $1.2214, passing its highest level since Feb. 25, and the dollar fell 0.24% to 108.935 Japanese yen.
The British pound, buoyed by the lifting of Covid-19 restrictions, rose past the $1.42 level for the first time since Feb. 24.
Bitcoin edged higher but remained near the three-month low it hit after Tesla Inc boss Elon Musk dampened enthusiasm for the cryptocurrency over the weekend.
Rival digital currency ether jumped 3.62% to $3,404.
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