By [ad_1]
By Kevin Buckland
TOKYO (Reuters) – The U.S. greenback drifted weaker on Monday, pressured by decrease Treasury yields, as merchants waited for extra essential financial information for recent clues on the timing of Federal Reserve rate of interest cuts.
Bitcoin rose to a greater than two-year peak amid massive flows into cryptocurrency exchange-traded funds.
The euro was agency following Friday’s 0.33% advance, with a European Central Financial institution coverage determination looming on Thursday.
The yen caught close to the intently watched 150 per greenback stage, as buyers tried to evaluate whether or not the Financial institution of Japan’s exit from its unfavourable rate of interest coverage might occur as quickly as this month.
The greenback index – which measures the foreign money towards six main friends, together with the euro and yen – eased 0.07% to 103.79 in early Asian buying and selling, bringing it nearer to the underside of the 103.43-104.97 vary of the previous month.
The index misplaced 0.26% on Friday following some weak manufacturing and building spending information.
That additionally weighed on Treasury yields, eradicating further assist for the greenback, with the benchmark 10-year yield sliding as little as 4.178% for the primary time in two weeks. The yield stood round 4.19% on Monday.
“Bias seems to be swinging in the direction of a take a look at of vary assist,” within the lead as much as key macro releases this week, in addition to Fed Chair Jerome Powell’s annual testimony to Congress, Westpac strategists wrote in a consumer word.
“Nonetheless, markets will want a significant shift in information to counsel that vary assist will probably be something aside from one other shopping for alternative,” that can maintain the greenback index inside its present vary, the word stated.
This week brings manufacturing and companies ISM readings on Tuesday, with the principle occasion on Friday within the type of month-to-month payrolls figures.
In the meantime, the greenback declined 0.09% to 149.99 yen, as merchants assessed cautious feedback from BOJ Governor Kazuo Ueda from late final week that it was too early to conclude that the central financial institution’s inflation goal is near being met.
That contrasted with hawkish remarks from BOJ board member Hajime Takata earlier the identical day, that had despatched the yen to a greater than two-week excessive of 149.21 per greenback.
Markets are weighing whether or not the BOJ will finish its unfavourable curiosity coverage at its March 18-19 assembly, or wait till April or later.
Elsewhere, the euro was little modified at $1.08425, sitting close to the highest of its latest vary.
Most economists count on the ECB will first reduce charges at its June assembly, however will probably be hoping for extra clues on the timing from central financial institution head Christine Lagarde’s press convention.
Bitcoin was final buying and selling about 1.5% greater from Sunday at $63,500, after earlier reaching $64,284.75, the firmest since November of 2021, the identical month it marked its report excessive of $68,999.99.
(Reporting by Kevin Buckland; Enhancing by Jacqueline Wong)
