{"id":110503,"date":"2021-03-25T05:37:00","date_gmt":"2021-03-25T05:37:00","guid":{"rendered":"https:\/\/fin2me.com\/?p=110503"},"modified":"2021-03-25T05:37:00","modified_gmt":"2021-03-25T05:37:00","slug":"dollar-extends-four-month-high-against-euro-as-recovery-outlooks-diverge","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/dollar-extends-four-month-high-against-euro-as-recovery-outlooks-diverge\/","title":{"rendered":"Dollar extends four-month high against euro as recovery outlooks diverge"},"content":{"rendered":"

TOKYO (Reuters) – The dollar hit a fresh four-month high against the euro on Thursday as the U.S. pandemic response continued to outpace Europe\u2019s, which has been hobbled by extended lockdowns and delayed vaccine rollouts.<\/p>

U.S. One dollar banknotes are seen in front of displayed stock graph in this illustration taken, February 8, 2021. REUTERS\/Dado Ruvic\/Illustration<\/figcaption>

The safe-haven greenback held on to most of a broad two-day advance, which has been fuelled by worries ranging from Europe\u2019s third COVID-19 wave and potential U.S. tax hikes to the persistent spectre of inflation.<\/p>\n

Even Germany\u2019s reversal of a call for a strict lockdown over the Easter period did little to build confidence in the region\u2019s economic outlook, instead compounding discontent with Chancellor Angela Merkel\u2019s handling of the pandemic.<\/p>\n

\u201cThe weak point in Europe remains around the vaccine rollout amid the rise in new virus cases and the tightening of restrictions … which likely means the mooted acceleration in Q2 may have to be pushed back by a quarter,\u201d Tapas Strickland, director of economics and markets at National Australian Bank, wrote in a client note.<\/p>\n

\u201cThe narrative of the U.S. outperforming Europe in the coming quarter remains.\u201d<\/p>\n

The euro traded near the four-month low of $1.1809 touched earlier in the Asian session, while a gauge of the dollar against six major peers hovered just below a four-month high of 92.617 reached overnight.<\/p>\n

The dollar gained 0.2% to 108.905 yen, another safe-haven currency, as the pair continued to consolidate below 109.<\/p>\n

At the same time, the dollar\u2019s rally showed some signs of fatigue, as some of its bruised rivals recovered from lows amid gains in many Asian equity markets.<\/p>\n

Australia\u2019s dollar, considered a liquid proxy for risk appetite, bounced 0.3% after earlier dipping to $0.7579, the lowest level since Feb. 2.<\/p>\n

The British pound rose 0.2%, climbing out of a six-week trough at $1.3675.<\/p>\n

Meanwhile, benchmark 10-year Treasury yields consolidated around 1.6%, a week after hitting a more than one-year top of 1.754%, which had also supported the dollar.<\/p>\n

\u201cThe U.S. longer-term Treasury yield is lower than the previous week\u2019s level, and that is a very big factor for the improvement in market sentiment,\u201d said Minori Uchida, chief currency analyst at MUFG Bank.<\/p>\n

\u201cEven if the yield is 1.6 or 1.7%, it is not enough to push up the dollar constantly.\u201d<\/p>\n

On Wednesday, U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell expressed their confidence in the U.S. recovery during a second day of testimony to Congress.<\/p>\n

Yellen told Senate lawmakers she was open to banks buying back stock and paying dividends, an updated view showing her confidence in the economy. Powell also said he thinks 2021 will be a \u201cvery, very strong year in the most likely case.\u201d<\/p>\n

A day earlier, though, the treasury secretary had put investors on alert after espousing tax hikes to pay for President Joe Biden\u2019s plans for upgrading infrastructure and other investments.<\/p>\n

Inflation could also rear its head as disruptions in the supply chain exert cost pressures for manufacturers, with U.S. factory activity picking up in early March.<\/p>\n

Meanwhile in Europe, an unexpected expansion of business activity did little to brighten the mood, with renewed COVID-19 lockdowns in many of the bloc\u2019s member nations meaning the gains may not last through April.<\/p>\n

Concerns have been magnified because the third wave of infections is being largely driven by the U.K. strain of the virus, according to Commonwealth Bank of Australia strategist Kim Mundy.<\/p>\n

\u201cThe risk is that the more contagious and deadly strain of the virus elicits a stronger response from European governments, which sees Europe remaining locked down for longer,\u201d she wrote in a note.<\/p>\n

\u201cA significant delay to Europe\u2019s re\u2011opening efforts will only widen the divergence between the economic outlook in Europe and the U.S.,\u201d putting additional pressure on the euro, she said.<\/p>\n

In cryptocurrencies, bitcoin continued to swing widely, falling below $52,000 again in early Asian trading before recovering to around $52,123.<\/p>\n

That is after briefly topping $57,000 overnight after Tesla Inc boss Elon Musk said customers can now buy the company\u2019s electric cars with the digital token.<\/p>\n

Bitcoin hit a record high of $61,781.83 on March 13.<\/p>\n

========================================================<\/h2>\n

Currency bid prices at 400 GMT<\/p>\n

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid<\/p>\n

Previous Change<\/p>\n

Session<\/p>\n

Euro\/Dollar<\/p>\n

$1.1823 $1.1815 +0.07% -3.23% +1.1828 +1.1804<\/h2>\n

Dollar\/Yen<\/p>\n

108.8850 108.6800 +0.21% +5.44% +108.9770 +108.7500<\/h2>\n

Euro\/Yen<\/p>\n

128.74 128.42 +0.25% +1.43% +128.8300 +128.4300<\/h2>\n

Dollar\/Swiss<\/p>\n

0.9354 0.9358 -0.06% +5.71% +0.9365 +0.9352<\/h2>\n

Sterling\/Dollar<\/p>\n

1.3699 1.3680 +0.17% +0.30% +1.3707 +1.3680<\/h2>\n

Dollar\/Canadian<\/p>\n

1.2569 1.2582 -0.08% -1.28% +1.2588 +1.2566<\/h2>\n

Aussie\/Dollar<\/p>\n

0.7603 0.7581 +0.30% -1.16% +0.7613 +0.7579<\/h2>\n

NZ<\/h2>\n

Dollar\/Dollar 0.6976 0.6961 +0.21% -2.86% +0.6985 +0.6960<\/p>\n

All spots<\/p>\n

Tokyo spots<\/p>\n

Europe spots<\/p>\n

Volatilities<\/p>\n

Tokyo Forex market info from BOJ<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

TOKYO (Reuters) – The dollar hit a fresh four-month high against the euro on Thursday as the U.S. pandemic response continued to outpace Europe\u2019s, which […]<\/p>\n","protected":false},"author":3,"featured_media":110502,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nDollar extends four-month high against euro as recovery outlooks diverge - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/dollar-extends-four-month-high-against-euro-as-recovery-outlooks-diverge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dollar extends four-month high against euro as recovery outlooks diverge - Fin2me\" \/>\n<meta property=\"og:description\" content=\"TOKYO (Reuters) – The dollar hit a fresh four-month high against the euro on Thursday as the U.S. pandemic response continued to outpace Europe\u2019s, which [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/business\/dollar-extends-four-month-high-against-euro-as-recovery-outlooks-diverge\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-25T05:37:00+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/03\/cnewsfotor477.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/business\/dollar-extends-four-month-high-against-euro-as-recovery-outlooks-diverge\/\",\"url\":\"https:\/\/fin2me.com\/business\/dollar-extends-four-month-high-against-euro-as-recovery-outlooks-diverge\/\",\"name\":\"Dollar extends four-month high against euro as recovery outlooks diverge - 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