NEW YORK: The dollar fell to a one-week low on Tuesday, as a slide in US Treasury yields raised doubts about the outlook for the greenback against the backdrop of a looming US fiscal stimulus package.
But Bitcoin soared to a new record high, on its way toward another key milestone: $50,000. It has surged more than 1,000% since March 2020 at the beginning of pandemic and analysts said forecasts of bitcoin hitting $100,000 this year doesn’t seem far-fetched after all.
“The reflation trade that boosted equities and caused the 30-year yield breach 2% has changed to worries that a quick spike in inflation would be detrimental to risk and also the dollar,” said John Doyle, vice president of dealing and trading, at Tempus Inc. in Washington.
The yen was another major beneficiary, with the Japanese unit rising 0.6% against the US dollar to 104.69 yen.
Elsewhere, the euro rose 0.4% to $1.2096 on Tuesday, up from a two-month low of $1.1952 touched Friday.
The British pound revisited its highs since May 2018. It last traded up 0.4% at $1.3787.