Early trade in New York: Dollar falls against major currencies

NEW YORK: The dollar fell against major currencies on Friday as US yields languished and the euro was boosted by an upbeat survey of purchasing managers. The dollar index was off 0.2% at 91.07, around levels it saw in early March. It has given up some of the gains made earlier in the year when yields on 10-year US Treasuries notes were rising.

The yields on the notes hovered around 1.56% on Friday, as they have been all week. They had reached 1.75% at the end of March. The euro rose 0.3% on the day to $1.2055 after a purchasing managers’ index for April came in better than expected in the euro zone and supported the view that the region’s economic recovery is accelerating and won’t lag as far behind the US recovery as earlier.

Trading in a narrow range this week, the dollar in the first quarter gained 3.6% but it has lost about 2.3% so far in April. The British pound rose 0.1% on the day. Bitcoin and other cryptocurrencies suffered hefty losses on Friday on concern that US President Joe Biden’s plan to raise capital gains taxes will curb investment in digital assets. Bitcoin, the biggest and most popular cryptocurrency, slumped 5% to $48,250, falling below the $50,000 mark for the first time since early March, while smaller rival Ether fell about 6%.