NEW YORK: The dollar languished near four-month lows against major currencies on Monday as bets on a robust global economic recovery continued to support currencies seen as riskier.
The dollar index moved around the 90 mark, down 0.2% on the day in morning trading in New York, slightly above a four-month low on Friday of 89.646.
Since the end of March, the greenback, seen as a safe-haven trade, has retreated steadily with optimism about the global economic recovery. But lately that move down seems to have slowed as traders begin to anticipate higher US interest rates coming when the US Federal Reserves reacts to signs of increasing inflation.
Among the currencies gaining on the dollar was the euro, up 0.3% to $1.222 The single currency has gained around 4% on the greenback since March as Europe has moved to catch up with the United States in vaccinating its people and reviving its economy.
Cryptocurrencies fought back on Monday, retaking ground lost during a bout of weekend selling that was fueled by further signs of a Chinese crackdown on the emerging sector.
Bitcoin rebounded 9% to $37,729, but was still down after crashing in recent days, falling as much as 17% to $31,107 on Sunday.
Bitcoin halved in value just weeks after April’s record peak of $64,895, undermining the case for its mainstream acceptance.
Ether, the second-largest cryptocurrency, rose 16% to $2,435, about half of its high two weeks ago.
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