Early trade in New York: Dollar slips against basket of currencies

NEW YORK: The US dollar slipped to a two-week low against a basket of currencies on Tuesday, as traders booked profits after a strong March and as a fall in Treasury yields from recent peaks put pressure on the US currency.

The US Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.146% lower at 92.427, its lowest since March 24.

The dollar has risen this year, along with Treasury yields, as investors bet the United States would recover more quickly from the pandemic than other developed nations, amid massive stimulus and aggressive vaccinations. At 2.5%, the gain in March was the dollar’s biggest monthly increase since the end of 2016.

Against the Japanese yen, the dollar slipped 0.28% to 109.87 yen, a one-week low.

Sterling slipped on Tuesday as investors withdrew some cash after cable jumped to its highest in more than two weeks, while traders continued to bet on a speedy re-opening of the British economy.

Major cryptocurrency Etheruem reached a peak of $2,151.63 on Tuesday, before giving up the day’s gains.