Early trade in New York: Dollar gains against most major currencies

NEW YORK: The dollar rose from an eight-week low against the euro on Monday, also gaining against major currencies such as the yen and Swiss franc, with investors consolidating positions ahead of the Federal Reserve’s monetary policy meeting this week.

The dollar has fallen nearly 3% since late March as US Treasury yields, which had risen this year and supported the greenback, traded in narrow ranges.

The Federal Open Market Committee ends its two-day meeting on Wednesday, and while no major policy changes are expected, investors will pay close attention to comments from Chairman Jerome Powell.

In midmorning trading, the euro fell 0.3% against the dollar to $1.2065 after disappointing euro zone data.

The dollar index was up slightly at 91.914, recovering from an eight-week low.

Against the yen, the dollar was up 0.1% at 107.96. The dollar also gained 0.2% versus the Swiss franc to 0.9151 franc.

In emerging markets, the Turkish lira weakened to as much as 8.48 versus the dollar, close to its record low of 8.58 reached in early November. The dollar though was last down 1.5% at 8.2950.

In the cryptocurrency market, bitcoin reclaimed the $50,000 mark, jumping 10% and on course to snap five straight days of losses exacerbated by US President Joe Biden’s plan to raise capital gains taxes for wealthy investors.

It was last up 9.5% at $53,770.