· Dollar set for back-to-back weekly losses as Treasury yields retreat
The dollar headed for its worst back-to-back weekly drop this year amid a continued retreat in Treasury yields from more-than-one-year highs as investors increasingly bought into the Federal Reserve’s insistence of continued monetary support.
The benchmark 10-year Treasury yield dipped to a one-month low of 1.528% overnight, from as high as 1.776% at the end of last month, even in the face of Thursday’s stronger-than-expected retail sales and employment data.
The dollar index, which tracks the greenback against six major peers, dipped to an almost-one-month low of 91.487 overnight before recovering somewhat to 91.678 early in the Asian session.
It’s set for a 0.6% decline for the week, extending the 0.9% slide from the previous week.
The gauge, also known as the DXY, surged with Treasury yields to an almost-five-month high at 93.439 on the final day of March, on bets that massive fiscal spending coupled with continued monetary easing will spur faster U.S. economic growth and higher inflation.
The dollar traded at 108.68 yen, heading for a 0.9% loss for the week, about the same as the previous week.
The euro changed hands at $1.1964, set for a 0.5% weekly advance, adding to the previous period’s 1.3% surge.
In cryptocurrencies, Bitcoin stood around $63,478, near the record high of $64,895 reached on Wednesday, when cryptocurrency platform Coinbase COIN.O made its debut in Nasdaq in a direct listing.
· Fed's Daly says not time for taper, still far from goals
San Francisco Fed President Mary Daly on Thursday said the U.S. economy is still far from making “substantial progress” toward the central bank’s goals of 2% inflation and full employment, the bar the Fed has set for beginning to consider reducing its support for the economy.
· Economy far from central bank's goals but outlook brightening, Fed's Mester says
The U.S. economy still has a long way to go to fully recover from the crisis caused by the coronavirus pandemic, which hit minorities and people with lower levels of education hardest, but the outlook is improving, Cleveland Federal Reserve Bank President Loretta Mester said on Thursday.
· U.S. imposes wide array of sanctions on Russia for ‘malign’ actions
The United States on Thursday imposed a broad array of sanctions on Russia, including curbs to its sovereign debt market, to punish it for interfering in last year’s U.S. election, cyber hacking, bullying Ukraine and other alleged malign actions.
The U.S. government blacklisted Russian companies, expelled Russian diplomats and barred U.S. banks from buying sovereign bonds from Russia's central bank, national wealth fund and Finance Ministry. The United States warned Russia that more penalties were possible but said it did not want to escalate.
The Russian Foreign Ministry reacted angrily, summoning the U.S. ambassador for a diplomatic dressing-down to tell him "a series of retaliatory measures will follow soon." A ministry spokeswoman also said a possible summit could be imperiled.
· Putin and Biden are circling each other warily
Just two days after President Joe Biden invited Russian President Vladimir Putin to meet in person, the Biden administration is rolling out a series of tough sanctions designed not just to signal unhappiness with the actions of the Russian regime, but to have a significant diplomatic and economic impact. Tensions between the United States and Russia, already about as high as they've been at any time since the Cold War, are about to get hotter.
As Russia masses tens of thousands of troops along its border with Ukraine, raising fears that it may be planning an invasion, Biden is sending an unequivocal message that the acquiescent days of the Trump administration are over.
· Low to medium risk of Russian invasion of Ukraine in next few weeks -US general
There is a "low to medium" risk that Russia will invade Ukraine over the next few weeks, the top U.S. general in Europe said on Thursday, in the first such military assessment amid mounting concern about Russian troop movements toward Ukraine's borders.
· Biden to welcome Japan’s Suga as first guest and key ally in China strategy
· Biden, Suga poised to present united front on Taiwan as China steps up pressure
U.S. President Joe Biden and Japanese Prime Minister Yoshihide Suga will present a united front on Taiwan, China’s most sensitive territorial issue, in a summit meeting on Friday, according to a senior U.S. administration official.
Biden and Suga are expected to agree on a joint statement on the Chinese-claimed but democratically ruled island at Biden's first in-person meeting with a foreign leader, said the official, who spoke on the condition of anonymity.
· China's massed drills near Taiwan take aim at Washington audience
· European Parliament gives initial backing to UK trade deal
· Pfizer CEO says third Covid vaccine dose likely needed within 12 months
Pfizer CEO Albert Bourla said people will “likely” need a booster dose of a Covid-19 vaccine within 12 months of getting fully vaccinated. His comments were made public Thursday but were taped April 1.
· S.Korean consortium to produce 100 mln doses a month of Russia's Sputnik V vaccine
· Tokyo Olympics must be 'reconsidered' due to Japan's failure to contain pandemic - report
· Japan to expand quasi-emergency Covid measures to 10 regions, casting doubts on Tokyo Olympics
· Africa CDC says cannot predict when second COVID-19 shots will arrive
Many Africans who have received their first COVID-19 vaccine do not know when they will get a second shot because deliveries are delayed, the continent's top public health official said on Thursday.
· Analysis: India shifts from mass vaccine exporter to importer, worrying the world
· Indian hospitals overwhelmed by COVID surge as beds, oxygen fall short
· India extends record rise in COVID-19 cases, election rallies continue
India extended a record daily run of new COVID-19 infections on Friday, spurred by hundreds of positive tests at a major religious gathering, as politicians pushed ahead with election rallies against advice they could worsen the outbreak.
· Argentine tensions erupt over coronavirus lockdowns as cases spike
Argentina’s national government and authorities in capital Buenos Aires are clashing over tightened COVID-19 restrictions and the closure of schools in and around the city.
The mayor of Buenos Aires on Thursday slammed the national government over new measures that include a two-week closure of schools and restrictions on movement after 8pm in the populous metropolitan area that is a hot spot for new cases.
· Thailand reports record daily number of 1,582 coronavirus cases
· Oil climbs to four-week high on strong China data, demand revival
Oil prices extended gains on Friday and were on course for a weekly gain of about 7% with an improved oil demand outlook and strong economic recoveries in China and the United States offsetting concerns about spikes in COVID-19 infections.
Brent crude futures rose 30 cents, or 0.5%, to $67.24 a barrel at 0551 GMT, following a 36 cent rise on Thursday.
U.S. West Texas Intermediate (WTI) crude futures were 28 cents, or 0.4%, higher to $63.74 a barrel, after climbing 31 cents on Thursday.
China's 2021 net crude oil imports are forecast to grow 3.4% this year versus 2020 to about 11.2 million barrels per day, a unit of top oil and gas group China National Petroleum Company said.
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