Currencies Overview: The Dollar Trimmed Losses on Yields Rising

The dollar trimmed its losses in early European trade after reaching its lowest level in several years against the pound sterling and the currencies of Australia and New Zealand, as bond yields rose in light of progress in Corona’s immunization programs and expectations of an acceleration of economic growth and inflation.

Yields on US Treasury bonds and German government bonds for ten years were at their highest in a year and eight months, respectively.

The pound’s consolidation at the level of $1.40 after reaching 1.4043, its highest level since April 2018, as Prime Minister Boris Johnson plans to exit the lockdown measures against the backdrop of rapid COVID-19 vaccinations.

The Australian dollar rose by as much as 0.5% to reach a nearly three-year high of $0.7908 before letting the dollar return to 0.7864.

The New Zealand dollar reached $0.7338, which is also its best level since early 2018, supported by Standard & Poor’s raising New Zealand’s sovereign credit rating by one notch, but it also saw the US dollar cut most of its losses gradually.

The yen lost 0.33% to 105.78 while the euro lost 0.2% to $1.2095, ahead of a survey of sentiment in Germany and a speech by Christine Lagarde, President of the European Central Bank.

Overall, the dollar index rose 0.28% to 90,543.

In the cryptocurrency market, Bitcoin retreated from a record high of $58,354.14, which is reached over the weekend, to $56,39.