NEW YORK: The dollar slumped to a six-week low against other major currencies on Monday as markets sorted out the plunge in US Treasury yields last week after the Federal Reserve reiterated that any spike in inflation is likely to be temporary.
Improved risk sentiment as shown by the rally in global stocks to record highs weighed on the greenback.
Bitcoin stabilized after losses from Sunday, when it plunged as much as 14% to $51,541, which a report attributed to news of a power outage in China.
The dollar index, which tracks the greenback against major currencies, fell 0.5% to 91.159, continuing a downtrend that started on March 31.
The greenback’s weakness was pronounced across the board early on Monday, with the currency hitting multi-week lows against major peers in the G10 group of currencies: the Japanese yen, the Swiss franc, the Australian dollar and the New Zealand dollar, and the euro.
The 10-year Treasury yield was up slightly on Monday to 1.6082% after sinking last week to 1.5280% from 1.7760% in March.
The euro rose above $1.20 for the first time in more than six weeks, touching a high of $1.2048 before easing off in the morning in New York to $1.2022.
Bitcoin was last at $56,265, flat for the day after plunging on Sunday.
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