Early trade in New York: Dollar resumes slide against majors

NEW YORK: The US dollar resumed its slide against major currencies and reached multi-year lows against the British pound and the Australian dollar on Monday, as traders focused on whether coronavirus vaccinations, economic growth expectations and higher inflation could push bond yields higher.

The US dollar index was last down 0.07% in mid-morning trading in New York, ticking up from earlier lows.

The dollar has been trending down since early February following a January bounce from a 7% decline in 2020.

The euro rose 0.2% against the dollar to $1.2142 after data showed German business morale rose more than expected in February thanks notably to the country’s resilient industrial sector.

The British pound was last up 0.2% to $1.4032 after reaching 1.4050, its highest level since April 2018, as Prime Minister Boris Johnson announced a path out of lockdowns on the back of rapid vaccinations.

The US dollar fell to three-year lows against the Australian dollar, which benefits from rising commodity prices. The Aussie hit $0.7908, its highest level since March 2018. The cryptocurrency fell as much as 16%, at one point going as low as $47,400.