Dollar slips after last week's climb as data eases tapering fears
The U.S. dollar slid on Monday, after posting its biggest weekly rise in more than two months last week, as markets embraced a risk-on mood with weak data suggesting the Federal Reserve is unlikely to quickly remove its accommodative monetary stance.
The dollar index, which measures its performance against a basket of six currencies, fell 0.57% to 92.95.
The euro was up 0.44% at $1.175, while the yen traded down 0.11% at $109.680.
U.S. business activity growth slowed for a third straight month in August as capacity constraints, supply shortages and the rapidly spreading Delta variant of the coronavirus weakened the economic rebound, data firm IHS Markit said.
The dollar index hit a nine-month high last week, climbing nearly 5% from May lows, as investors firmed up bets the Fed will start scaling back stimulus policies spurred by the pandemic ahead of Europe and Japan.
Markets have concluded there’s not going to be a “taper tantrum” like in 2013, Moya said. Fears the Fed would tighten monetary policy caused interest rates to spike at the time.
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In cryptocurrencies, bitcoin topped $50,000 for the first time since mid-May, and last traded 1.16% higher at $49,875.87.
Treasury yields are mixed with key Fed policy event in focus
U.S. Treasury yields were mixed Monday, with investors focusing on the Federal Reserve’s annual central banking event, due to be held later in the week.
The yield on the benchmark 10-year Treasury note fell less than a basis point to 1.257% at 4:10 p.m. ET. The yield on the 30-year Treasury bond rose slightly to 1.878%. Yields move inversely to prices.
Reference: Reuters, CNBC
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