AVN 67.05 Increased By ▲ 1.85 (2.84%)
BAFL 31.05 Increased By ▲ 0.31 (1.01%)
BOP 4.88 Increased By ▲ 0.08 (1.67%)
CNERGY 3.78 Increased By ▲ 0.07 (1.89%)
DFML 14.49 Increased By ▲ 0.28 (1.97%)
DGKC 41.61 Increased By ▲ 0.56 (1.36%)
EPCL 46.22 Decreased By ▼ -0.23 (-0.5%)
FCCL 11.63 Increased By ▲ 0.23 (2.02%)
FFL 5.11 Increased By ▲ 0.06 (1.19%)
FLYNG 5.80 No Change ▼ 0.00 (0%)
GGL 10.40 Increased By ▲ 0.07 (0.68%)
HUBC 67.54 Increased By ▲ 0.67 (1%)
HUMNL 5.77 Increased By ▲ 0.06 (1.05%)
KAPCO 28.00 Increased By ▲ 0.24 (0.86%)
KEL 2.29 Increased By ▲ 0.09 (4.09%)
LOTCHEM 25.06 Increased By ▲ 0.16 (0.64%)
MLCF 21.67 Increased By ▲ 0.23 (1.07%)
NETSOL 86.06 Increased By ▲ 2.46 (2.94%)
OGDC 92.38 Increased By ▲ 6.48 (7.54%)
PAEL 11.06 Increased By ▲ 0.05 (0.45%)
PIBTL 4.23 Increased By ▲ 0.01 (0.24%)
PPL 80.15 Increased By ▲ 5.67 (7.61%)
PRL 13.64 Increased By ▲ 0.21 (1.56%)
SILK 0.89 Decreased By ▼ -0.03 (-3.26%)
SNGP 43.47 Increased By ▲ 3.07 (7.6%)
TELE 5.93 Increased By ▲ 0.07 (1.19%)
TPLP 15.82 Increased By ▲ 0.42 (2.73%)
TRG 114.88 Increased By ▲ 3.47 (3.11%)
UNITY 13.76 Increased By ▲ 0.01 (0.07%)
WTL 1.16 Increased By ▲ 0.02 (1.75%)
BR100 4,124 Increased By 87 (2.16%)
BR30 14,930 Increased By 518.1 (3.59%)
KSE100 41,191 Increased By 719.6 (1.78%)
KSE30 15,494 Increased By 331.4 (2.19%)
Markets

US dollar rallies as risk appetite ebbs; bitcoin pulls back

  • Dollar gains after days of losses this week.
  • Bitcoin falls, but set for 20% weekly rise.
  • Traders reassess pace of US recovery on weak jobs data.
  • Euro, commodity currencies tick lower.
Published February 12, 2021
Follow us

NEW YORK: The dollar gained on Friday after several days of losses this week, as risk appetite soured with stocks and some commodity prices lower, while investors also consolidated gains made on other currencies ahead of a long weekend in US markets.

Financial markets are closed on Monday for President's Day.

"We're seeing the consolidation that we expected earlier in the week," said Erik Bregar, head of FX strategy, at Exchange Bank of Canada in Toronto. "Risk sentiment is still the predominant driver of the dollar right now."

Bitcoin, meanwhile, was down 2.2% on the day at $46,909, after hitting a record high of $49,000. It was on track for gains of roughly 20% in a milestone week marked by the endorsement of major firms such as Elon Musk's Tesla.

The world's most popular cryptocurrency hit a record high overnight after US banking group BNY Mellon said it had formed a unit to help clients hold, transfer and issue digital assets.

"There is clearly some nervousness around this level," OANDA analyst Craig Erlam told his clients, citing fears that a correction could hit soon after the $50,000 landmark is reached.

In mid-morning trading, the dollar index rose 0.2% to 90.621 after subdued volumes in Asia because of the Lunar New Year.

It was, however, on track to fall 0.5% for the week - its first losing week in three - in what ING analysts described as a "consolidative mood" amid uncertainty about the pace of the US economic recovery.

Weaker-than-expected weekly US jobless claims data on Thursday added to concerns the dollar's previous rally had priced in too fast a rebound for the US economy.

The dollar was up 0.3% against the yen at 105.04.

There has been a divergence in views among traders this year over how US President Joe Biden's planned $1.9 trillion fiscal stimulus package will affect the dollar.

Some see it as bolstering the currency as it should speed a US recovery relative to other countries, while others reckon it would feed a global reflation narrative that should lift riskier assets at the dollar's expense.

The euro fell 0.3% to $1.2091.

The British pound was little changed at $1.3822 against the dollar but was steady against the euro after data showed Britain's economy suffered a record slump in 2020 but grew in the final quarter.

The Australian, New Zealand, and Canadian dollars all fell against the greenback as risk appetite ebbed.

Comments

Comments are closed.

US dollar rallies as risk appetite ebbs; bitcoin pulls back

Rupee up 0.46%, ends day at 275.30 against US dollar

KSE-100 jumps over 700 points amid return of positive sentiment

Second hike in two weeks: Honda Atlas jacks up car prices by up to Rs550,000

PM Shehbaz announces aid for quake-hit Turkiye

India opens its largest helicopter factory in new defence push

Govt projection of achieving $3bn current account surplus in FY23 ‘unrealistic’: PBC

PTI ready to set aside differences for peace in country: Asad Qaiser

IHC bars Sindh, Balochistan police from taking action against Sheikh Rashid

Govt schedules All Parties Conference for February 9

Kohinoor Textile board recommends buyback of 30 million ordinary shares