Early trade in New York: Dollar steadies, euro strengthens

NEW YORK: The dollar steadied on Tuesday amid a mix of gains and losses against major currencies as interest rates in the United States moved in a tight range and the outlook for vaccinations in Europe improved.

After touching its lowest level in nearly seven weeks in Asia trading, the dollar index steadied in Europe and was flat in the morning in New York at 91.0160, down 0.02%.

The euro rose 0.15% to $1.2053 and the British pound backed off 0.12% to $1.397 after gaining 1% on Monday.

The dollar has fallen in April as US bond yields retreated from the 14-month highs of 1.776% reached last month. The currency and yield declines have come as evidence mounted that the Federal Reserve would be slower about tightening monetary policy than it had appeared to the market, analysts said.

The 10-year Treasury yield was trading in a narrow range around 1.60% on Tuesday.

Against the Japanese yen, the dollar bounced to 108.822 after having broken below 108 for the first time since March 5.

The commodity-linked Norwegian crown hit its strongest since 2018 versus the dollar, and also reached its strongest since January 2020 versus the euro.

Bitcoin was up less than 1% and trading around $56,138 on Tuesday morning.