Dollar rises - Bitcoin surges to all-time record
Dollar rises from more than two-year low as U.S. stocks drop
The dollar rallied from its lowest level in 2-1/2 years on Monday, as broad risk sentiment soured again and shares on Wall Street fell, with investors disheartened by weakening U.S. economic data and the absence of any traction on another stimulus package.
Still, the greenback was on course to post its largest monthly percentage loss since July.
Data on Monday showed that contracts to buy U.S. previously-owned homes fell for a second straight month in October, with the Pending Home Sales Index, based on contracts signed last month, falling 1.1% to 128.9.
Other data showed activity at factories in the Midwest and Texas slowing this month, with the Chicago PMI falling to 58.2 in November from 61.1 in October, likely as a nationwide resurgence in new COVID-19 infections curbed new orders and disrupted production.
On the last day of the month, the dollar index rose 0.1% to 91.84.
The euro slipped 0.1% against the dollar to $1.1953, after earlier hitting a three-month high of $1.20 . The European Central Bank signalled earlier this year it was carefully monitoring the euro-dollar exchange rate.
The dollar rose 0.1% against the yen to 104.27 yen.
The dollar was flat to slightly higher against the Chinese yuan in the offshore market, at 6.5765 . Monday’s data showed China’s manufacturing grew at its fastest pace in more than three years in November, while services sector growth hit a three-year high.
The offshore yuan was on course for its longest streak of monthly gains in six years, boosted by China’s economic recovery from the coronavirus and steady capital inflows.
Brexit negotiations, meanwhile, remain the focus for the pound, which rose 0.3% versus the dollar to $1.3352.
Britain and the European Union are running out of time to agree on a Brexit trade deal, but if good progress is made this week the talks could be extended, Britain’s environment secretary said.
Bitcoin surges to all-time record as 2020 rally powers on
Bitcoin soared to a record high against the dollar on Monday, as its 2020 rally steamed ahead, boosted by increased demand from both institutional and retail investors that saw the virtual currency as a safe-haven and a hedge against inflation.
The digital unit touched an all-time peak of $19,864.15, breaking its prior record set nearly three years ago. It was last up 6.1% at $19,306.35.
Bitcoin overall has gained more than 170% this year, fuelled by a demand for riskier assets amid unprecedented fiscal and monetary stimulus, hunger for assets perceived as resistant to inflation, and expectations that cryptocurrencies would win mainstream acceptance.
“Bitcoin is a natural safe haven for those seeking shelter from rapidly increasing central bank money printing and the inflation that everyone agrees is already increasing,” said Sergey Nazarov, co-founder of Chainlink, a decentralized network that provides data to smart contracts on the blockchain.
Reference: CNBC
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