The dollar fell against big currencies on Friday as US yields plummeted and the euro pushed out by a consumer opinion poll.
The dollar index was off 0.5% at 90.86, around the levels it had seen in early March. It surrendered some of the gains it made earlier in the year when 10-year US Treasury bond yields were rising.
Bond yields were up about 1.56% on Friday, as they have been all week. They were up 1.75% at the end of March.
The euro was up 0.3% on the day to $ 1.2055 after the April purchasing control index outperformed the euro zone and supported the view that the region’s economic recovery is on track. accelerate and will not lag so far behind the US. recovery as before.
A similar U.S. opinion poll came out later Friday and appeared to support the dollar shortly thereafter.
Friday morning’s market was “a continuation of what we’ve seen since the beginning of the month,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
“It got a very strong first quarter dollar and the market is still doing it,” Chandler said.
Trading in a tight range this week, the dollar gained 3.6% in the first quarter, but lost about 2.3% in April.
Markets are now looking to next week’s US Federal Reserve meeting to review monetary policy and the economy.
Fed Chairman Jerome Powell is expected to echo a message on Thursday from European Central Bank President Christine Lagarde that she has downplayed some expectations for withdrawal of financial relaxation. Lagarde said ECB speeches eliminating emergency bond purchases are premature.
Powell’s comments could put more downward pressure on Treasury yields and limit any rebound in the dollar.
“Real US yields remain very negative on a 10-year basis and reflect some of this uncertainty that will continue to limit the face-to-face for the US dollar,” said Derek Halpenny, analyst at MUFG.
Australian and New Zealand dollars settled on Friday, but traders said there were risks on the downside due to the recent weakening in commodity prices.
The British pound was up 0.1% on the day.
Bitcoin and other cryptocurrencies took heavy losses on Friday out of concern that US President Joe Biden’s plan to raise capital gains taxes will reduce investment in digital assets. Bitcoin, the largest and most popular cryptocurrency, plummeted 5% to $ 48,250, dipping below the $ 50,000 mark for the first time since early March, while smaller, competitive Ether fell by around 6%.