Dollar reduces losses as returns rise

The dollar trimmed its losses in early European trading after reaching a multi-year low against the pound and the Currencies of Australia and New Zealand as bond yields rose as progress in corona immunization programmes and expectations of accelerated economic growth and inflation.

U.S. Treasury and 10-year German government bonds yields were the highest in a year and eight months, respectively.

The pound held steady at $1.40 after hitting $1.4043, its highest level since April 2018, as Prime Minister Boris Johnson plans to exit the general isolation on the back of rapid fortifications from Coved-19.

The Australian dollar rose as much as 0.5 per cent to a nearthree-year high of $0.7908 before leaving the dollar back to 0.7864.

The New Zealand dollar stood at $0.7338, also its best level since early 2018, supported by s&p’s one-point raise in New Zealand’s sovereign credit rating, but also saw the US dollar gradually reduce its losses.

The yen lost 0.33 percent to 105.78, while the euro lost 0.2 percent to $1.2095 ahead of a sentiment survey in Germany and a speech by European Central Bank President Christine Lagarde.

Overall, the dollar index rose 0.28 percent to 90.543.

In the cryptocurrency market, Bitcoin fell from a record high of $58,354.14 over the weekend to $56,000 to $39.39.