NEW YORK: The US dollar bounced off three-week lows on Tuesday as bullish comments from a US Federal Reserve official and upbeat manufacturing data helped arouse investor risk appetite.
Bitcoin also surpassed $50,000 to a record high as the cryptocurrency continued to gain broader acceptance from companies and investors.
“The dollar is cutting its losses,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. “We had ... bullish comments from Bullard, and the news on manufacturing is helping to dim the spotlight on lacklustre data we saw last week, which was seen as a catalyst for the dollar’s downturn.”
Against a basket of its rivals, the greenback gained 0.33% to 90.616, after earlier falling to 90.118, its lowest level since Jan. 26.
Bitcoin breached the $50,000 threshold to touch an all-time high of $50,602, but had last pulled back to $49,280.93. The world’s largest cryptocurrency has risen around 70% so far this year, boosted by Tesla Inc’s announcement that it had bought $1.5 billion in Bitcoin.
The euro reversed its gains against the strengthening dollar and was last down 0.23%. Rising oil prices briefly lifted the Canadian dollar and Norwegian crown to multiweek highs.
Sterling reversed its gains against the dollar, and was last down 0.27%, after touching its highest level since April 2018 due to Britain’s vaccine rollout progress.
The risk-sensitive Australian dollar briefly hit a one-month high of $0.7805 and the kiwi touched a five-week peak of $0.7269.—Reuters
Comments
Comments are closed for this article.