By Gina Lee
Investment.com – Dollar fell on Thursday morning in Asia, remaining at a multi-week low as declining U.S. Treasury yields diminished U.S. currency’s safe haven interest rate advantage. .
Tracking the greenback against another basket of currencies inched 0.03% to 91,105 on X 12:51 AM ET (4:51 AM GMT).
The pair fell 0.10% to 107.94, close to a seven-week low.
The pair edged down 0.10% to 0.7743 and the pair fell 0.30% to 0.7190.
The pair fell 0.04% to 6.4874, with the domestic yuan rising to its strongest level since March 12 at 6.4828 per dollar.
This pair fell 0.01% to 1.3928.
Investors are looking for the European Central Bank (EBC), which will be delivered by the end of the day. Any positive comment from the central bank on the economic outlook or hinting at a reduction in bond purchases is widely expected to boost the euro. The single coin was trading at $ 1.2043, not far from the record levels set on March 3.
The ECB is expected to maintain its current policy at the end of the day meeting, but some investors predict that the meeting will show whether the ECB will slow down its bond buying from June onwards. De Nederlandsche Bank President Klaas Knot has said that a fall in price is possible and that the euro could continue to rise against the dollar.
Monetary policy remains the focus as the Central Bank of Canada signals that it may begin to raise interest rates by the end of 2022 after slashing bond buying, becoming the first Group of Seven central bank. proceed to withdraw unprecedented stimulus. The Canadian dollar climbed to a six-week high on Wednesday and last traded at 1.2500 against its US dollar.
The risk-sensitive Australian and New Zealand dollars are also trading near a one-month high against the dollar, as improved economic prospects in Antipodean countries leave their central banks more open. the ability to follow the Reserve Bank of Canada.
Investors also turned their backs on the greenback as U.S. Treasury yields reversed their March 2021 peaks, but some still hold a more positive long-term outlook on a strong U.S. economy. robustness and the rollout of the COVID-19 vaccine is improving.
Wednesday’s strong demand helped the fixed income market regain its position and limit yields.
“We have confirmed that demand for the Treasury is good, which means there is no increased pressure on yields … in this environment the dollar will test a decline against the yen. . The euro is different because there are signs that people inside the ECB are more optimistic about the economy, which raises questions about the cuts, ”IG Securities senior forex strategist Junichi Ishikawa told Reuters.
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