Early trade in New York: Dollar snaps winning streak, bitcoin hovers near record highs

NEW YORK: The dollar lost ground on Thursday, ending its first two-day winning streak in two weeks as disappointing labor market data tempered expectations for a speedy economic recovery from the global health crisis.

“Right around 2 am this morning the dollar got sold across the board,” said Erik Bregar, head of FX strategy at Exchange Bank of Canada in Toronto. “(That was) a precursor to the further weakness we’re seeing today.”

Bitcoin eased off its record high of $52,640 reached overnight. The cryptocurrency has surged roughly 78% so far this year as institutional interest ramps up, but some analysts warn that the rally might be unsustainable.

The dollar slightly pared its losses against a basket of world currencies on the news.

The dollar index was off 0.24% at 90.680 after two days of consecutive gains.

The euro gained 0.30% to $1.2077 after sliding 0.5% overnight, the most in two weeks.

The yen gained some ground against the greenback and was last almost flat at 105.800, but still below its 200-day moving average.

Sterling advanced 0.63% against the dollar and was last at 1.395, and hit a high against the euro of 86.525 pence. The pound is the best-performing G10 currency against the dollar this year.—Reuters