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Dollar pinned near one-month low amid subdued U.S. yields

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TOKYO — The dollar was pinned near a

one-month low to major peers on Monday, with Treasury yields

hovering near the lowest in five weeks, after the U.S. Federal

Reserve reiterated its view that any spike in inflation was

likely to be temporary.

The safe-haven greenback was also held down by improved risk

sentiment amid a rally in global stocks to record highs.

Bitcoin nursed losses from Sunday, when it

plunged by as much as 14% to $51,541, which a report attributed

to news of a power outage in China. It last traded around


The dollar index, which tracks the currency against

six rivals, was at 91.684, not far from the low of 91.484 marked

last week, a level not seen since March 18.

The greenback bought 108.74 yen, near the lowest

since March 24.

The euro changed hands at $1.19565, near the

highest since March 4.

“The fixed income market will dominate my world this week,”

with the risk currently skewed to further yield declines,

pressuring the dollar, Chris Weston, head of research at

Pepperstone Markets Ltd, a foreign exchange broker based in

Melbourne, wrote in a client note.

Wall Street’s gains amid low volatility “should keep USD

rallies contained and attract further USD sellers,” he wrote.


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Benchmark 10-year yields could fall to as low as

1.47%, from around 1.56% currently, according to Weston.

Key technical points are 91.30, the March 18 low, for the

dollar index, and $1.2000 for euro, which could trigger a run to

$1.22, he said.

The 10-year Treasury yield sank to as low as 1.5280% last

week, from a more-than-one-year high of 1.7760% at the end of

last month, reducing the appeal of the United States as an


The S&P 500 closed at a record high on Friday,

extending a rally in global stocks.

Fed Governor Christopher Waller said on CNBC on Friday that

the U.S. economy “is ready to rip” as vaccinations continue and

activity picks up, but a rise in inflation is likely to be

transitory, echoing comments from other Fed officials including

Chair Jerome Powell over the past week.

Bitcoin continued its retreat from the record high of

$64,895.22 reached on April 14 with its weekend plunge.

Data website CoinMarketCap cited a blackout in China’s

Xinjiang region, which reportedly powers a lot of bitcoin

mining, for the selloff.

Analysts at National Australia Bank cited “speculation in

several online reports” that the U.S. Treasury may crack down on

money laundering within digital currencies for the sharp move


The bitcoin rout also followed a decision on Friday by

Turkey’s central bank to ban the use of cryptocurrencies for


Despite recent weakness, the world’s most popular

cryptocurrency remains up 97% in 2021, after more than


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quadrupling last year.


Currency bid prices at 110 GMT

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Euro/Dollar $1.1955 $1.1983 -0.23% -2.15% +1.1978 +1.1954

Dollar/Yen 108.7370 108.8100 -0.05% +5.29% +108.8200 +108.6600


Dollar/Swiss 0.9210 0.9201 +0.11% +4.11% +0.9210 +0.9205

Sterling/Dollar 1.3815 1.3850 -0.22% +1.15% +1.3840 +1.3814

Dollar/Canadian 1.2520 1.2510 +0.08% -1.68% +1.2520 +1.2505

Aussie/Dollar 0.7712 0.7734 -0.25% +0.29% +0.7730 +0.7712

NZ 0.7125 0.7148 -0.29% -0.76% +0.7141 +0.7117


All spots

Tokyo spots

Europe spots


Tokyo Forex market info from BOJ

(Reporting by Kevin Buckland; Editing by Muralikumar



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