The U.S. dollar was supported on Monday amid renewed worries about coronavirus restrictions in Asia, but investors are heavily positioned for it to fall while the U.S. Federal Reserve keeps rates low.
Bitcoin skidded to a three-month low after Tesla Inc (TSLA.O) boss Elon Musk suggested at the weekend that the car maker is considering selling or may have already sold some of its holdings in the cryptocurrency.
The greenback was little changed against the euro and the yen , but it remained close to testing major support levels, which if broken could see a return to a downtrend that pressed it lower through April.
A dollar bounce that followed higher-than-expected inflation data last week has also faded as traders figure the U.S. Federal Reserve will keep rates low.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.272 after a recent decline from above 90.8.
The dollar last traded at $1.2130 per euro and has support around $1.2179. The dollar index is, likewise, at 90.397, just above key support at 89.677 and 89.206. It bought 109.37 yen and traded at $0.7756 per Aussie and $0.7219 per kiwi .
Fed minutes, from an April meeting that predated the data surprise on inflation last week, are due on Wednesday and are the next market focus for clues on the central bank's thinking.
Bitcoin last traded down 7.13% at $43,133. It earlier fell to $42,185, the lowest since Feb. 8. Ether fell to a two-week low of $3,123.
Sterling was perched near a two-and-a-half-month high on Monday, at $1.4086, as Britain reopens its economy after a four-month COVID lockdown.
Singapore and Taiwan have both tightened curbs as cases rise, which weighed on the Singapore dollar , while the Taiwan dollar fell to a three-week low on Monday.
The onshore yuan was little changed at 6.4380 per dollar after a mixed round of economic data showed China's industrial output had slowed and retail sales missed forecasts last month.
S.Africa's rand weaker as rising Asian coronavirus cases dent risk demand
The rand was 0.18% weaker at 14.1600 per dollar compared to a close of 14.1350 on Friday in New York.
Reference: CNBC,Reuters
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