Dollar hovers near year-long high as Bitcoin hits $ 50,000


A US dollar bank note is seen in this illustration taken May 26, 2020. REUTERS / Dado Ruvic / Illustration / File Photo

  • Safe-haven dollar supported by the sale of shares
  • The Australian dollar among the biggest falls
  • RBNZ meets Wednesday, markets expect interest rate hike
  • Chart: Global exchange rates

LONDON, Oct. 5 (Reuters) – The US dollar edged down to a one-year high against its main rivals on Tuesday ahead of a key payroll report at the end of the week as the cryptocurrency Bitcoin has reached $ 50,000 for the first time in four weeks.

The risk-sensitive Australian dollar was one of the biggest drops, with the Reserve Bank of Australia reiterating that it did not plan to hike interest rates until 2024.

The U.S. dollar index, which measures the currency against six rivals, rose 0.13% to 93.932, returning to Thursday’s high of 94.504, its highest since late September 2020.

The index has risen 2.8% since September 3, with traders scrambling to assess the decline in economic stimulus this year and possible rate hikes for 2022.

The dollar also benefited from demand for safe havens amid concerns ranging from the risk of global stagflation to the deadlock on the US debt ceiling.

“The dollar started the week back yesterday, failing to rise following a further sell-off of shares, and suffering from OPEC + ‘s decision to stick to incremental increases in supply ( (400,000 barrels / day) which sent oil prices (and oil-sensitive currencies) higher, ”ING strategists said in a note.

“As pointed out in yesterday’s FX Daily, we believe markets will continue to buy dollar declines, and that is what appears to have happened overnight as the greenback rebounded across the board. areas.”

Friday’s non-farm payroll data is expected to show continued improvement in the labor market, with 488,000 jobs expected to be created in September, according to a Reuters poll.

Meanwhile, an Asia-Pacific equity index (.MIAP00000PUS) fell 0.74% after falling 1.3% overnight for the S&P 500 (.SPX).

The Aussie fell 0.1% to $ 0.7281, retreating further from Monday’s four-day high of $ 0.73045.

The New Zealand dollar fell 0.34% to $ 0.6939, also falling from a four-day high at $ 0.6981. The Reserve Bank of New Zealand (RBNZ) decides its policy on Wednesday, with markets forecasting a quarter point increase in interest rates.

“The RBA’s tough stance weighs on the AUD,” Commonwealth Bank of Australia strategist Joseph Capurso wrote in a report.

For the RBNZ, “with markets already forecasting a cycle of rate hikes, the likelihood of a significant rise in the NZD is low,” he said.

The dollar gained 0.25% to 111.19 yen, while the euro weakened 0.21% to $ 1.15965.

The British pound edged up 0.15% to $ 1.3629 and hit a three-week high against the euro at 85.11 pence.

While consensus is in favor of further gains for the greenback – with speculators pushing net long bets to their highest level since March 2020 – TD Securities warns that room for maneuver may be limited.

“As the short-term dollar bias is on the rise, we are reluctant to continue moving at these levels,” wrote Mark McCormick, TD’s global head of foreign exchange strategy, in a report.

There is already a lot of bad global news valued in US dollars and “the key for the markets in the coming weeks is to determine the extent of the risk premium already embedded in relation to how these factors play out,” he said. McCormick said.

Meanwhile, cryptocurrencies have rallied. Bitcoin, the world’s largest cryptocurrency by market value, hit $ 50,000 for the first time since September 7. read more

Reporting by Ritvik Carvalho Additional reporting by Kevin Buckland in Tokyo Editing by Raissa Kasolowsky and David Goodman

Our Standards: The Thomson Reuters Trust Principles.


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