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The dollar held on to last week’s gains on Monday after the Federal Reserve surprisingly appeared to be leaning toward monetary tightening, while Bitcoin tumbled as China stepped up its crackdown on cryptocurrency mining.
The dollar index was little changed after jumping 1.9% last week – the largest increase since March 2020 – as the US Federal Reserve spoke of a faster-than-expected end to its monetary easing policy.
The index, which measures the greenback against six major currencies, fell slightly to 92.221 from a peak of 92.405 reached on Friday, a level not reached since April 13.
The Fed’s hawkish stance has dented risk appetite, even in stock markets, while boosting safe haven currencies such as the dollar and Japanese yen.
The yen continued its gains today, rising a quarter of a percent against the dollar to 109.97 yen, while the euro stabilized in general.
On the cryptocurrenncy, the weak performance of Bitcoin continued to drop 8% and fell below $33,000, with China expanding restrictions on mining in Sichuan province.
Cryptocurrency mining is a major activity in China, contributing more than half of global Bitcoin production.
