· Dollar turns upward, yen slips as economic outlooks diverge
The dollar turned upward against major currencies for the first time this week as U.S. yields held steady, Japan’s economic outlook worsened and the Reserve Bank of New Zealand surprised markets by hinting at a higher interest rates.
The dollar index rose as much as 0.4% and crossed above 90 on Wednesday afternoon in New York, but still remained near January lows as the market tapped the brakes on its steady slide since March.
Benchmark yields on 10-year U.S. Treasuries stayed within their range from the day before and were edging up higher at 1.58% after an auction of 5-year notes.
Against the Japanese yen on Wednesday, the dollar gained as much as 0.3% and topped 109 yen.
The Japanese government slashed its economic outlook for the first time in three months, citing new weakness in private consumption and business conditions because of coronavirus emergency measures.
The yen is likely to underperform as Japan’s economic outlook worsens, according to Win Thin, global head of currency strategy at Brown Brothers Harriman.
Yen weakness could offset the currency’s usual appeal as a safe haven.
· Iran bans bitcoin mining as its cities suffer blackouts and power shortages
Iran has banned the energy-intensive mining of cryptocurrencies such as bitcoin for nearly four months, as the country faces major power blackouts in many cities.
The ban is effective immediately and will be in place until Sept. 22, Rouhani told state TV, in the latest sign of high-profile rejection of the popular digital currency.
Cryptocurrencies bitcoin and ether were up a fraction of 1% and steady after a volatile weekend.
· China's crypto crackdown speeds shift to central Asia, North America mining
A crackdown by Beijing is rapidly accelerating a shift in focus by makers of machines that 'mine' cryptocurrencies like bitcoin from China to North America and Central Asia as Chinese clients face an uncertain future.
China's central government vowed to clamp down on bitcoin mining and trading on Friday, causing some miners to halt all or part of their operations in a country that accounts for more than half of the world's crypto supply.
The makers of the equipment miners use, many of them Chinese, say they are now looking elsewhere for growth.
· Bitcoin hovers around $40,000 after a wild week of trading
The price of bitcoin briefly climbed back above $40,000 on Wednesday morning, a week after its price tumbled 30% to around $30,000.
The world’s most popular cryptocurrency traded 6.9% higher at $40,196.06 at 9:00 a.m. ET on Wednesday, according to Coin Metrics data. Bitcoin was last trading about 2.3% higher at $38,469.84 by 4:05 p.m. ET.
Other major digital coins were also in the green Wednesday. Ethereum’s price jumped about 7.2% higher to $2,735.71, while dogecoin’s price was 1.8% higher at 34 cents a coin.
Reference: CNBC, Reuters
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