NEW YORK: The dollar fell to two-week lows on Tuesday in choppy trading, led by losses against the yen and euro, as risk sentiment improved in the afternoon session amid stock market gains and as US Treasury yields rose.
Bitcoin soared to a record high, headed toward the $50,000 milestone. It has surged more than 1,000% since March 2020 and analysts said forecasts of bitcoin hitting $100,000 this year no longer seem far-fetched.
“The FX market has been taking some of its cue from the equity market,” said Simon Harvey, senior FX market analyst at Monex Europe in London.
The dollar index was 0.6% lower at 90.54, after earlier hitting a two-week low.
Cryptocurrencies were the biggest beneficiary of the weakening dollar. The Japanese yen was another major beneficiary, rising 0.6% against the US dollar to 104.69 yen. Earlier, the dollar fell to a two-week low of 104.50 yen.
Elsewhere, the euro rose 0.5% to $1.2104 on Tuesday, up from a two-month low of $1.1952 touched Friday.
The British pound climbed to $1.3816, its highest since May 2018. It last traded up 0.6% at $1.3811.
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