Dollar hovers near year-long high as Bitcoin hits $ 50,000

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A US dollar bank note is visible in this illustration taken May 26, 2020. REUTERS / Dado Ruvic / Illustration / File Photo

Safe-haven dollar supported by sell-off Australian dollar among biggest drops RBNZ meets on Wednesday, markets expect interest rates to riseChart: Global exchange rates

LONDON, Oct. 5 (Reuters) – The US dollar edged down to a one-year high against its main rivals on Tuesday ahead of a key payroll report at the end of the week, while the cryptocurrency Bitcoin hit $ 50,000 for the first time in four weeks.

The risk-sensitive Australian dollar was one of the biggest pullbacks, with the Reserve Bank of Australia reiterating that it did not plan to hike interest rates until 2024.

The U.S. dollar index, which measures the currency against six rivals, rose 0.13% to 93.932, returning to Thursday’s high of 94.504, its highest since late September 2020.

The index has risen 2.8% since September 3, as traders scramble to assess the dwindling economic stimulus this year and possible rate hikes for 2022.

The dollar also benefited from demand for safe havens amid concerns ranging from the risk of global stagflation to the deadlock on the US debt ceiling.

“The dollar started the week back yesterday, failing to rise following another sell-off of shares, and suffering from OPEC + ‘s decision to stick with incremental increases in supply ( (400,000 barrels / day) which sent oil prices (and oil-sensitive currencies) higher, ”ING strategists said in a note.

“As pointed out in yesterday’s FX Daily, we believe markets will continue to buy dollar declines, and this seems to have happened overnight, as the greenback rebounded across the board. areas.”

Friday’s data on non-farm wages should show continued improvement in the labor market, with a forecast of 488,000 jobs being created in September, according to a Reuters poll.

Meanwhile, an Asia-Pacific equity index (.MIAP00000PUS) fell 0.74% after falling 1.3% overnight for the S&P 500 (.SPX).

The Aussie fell 0.1% to $ 0.7281, retreating further from Monday’s four-day high of $ 0.73045.

The New Zealand dollar fell 0.34% to $ 0.6939, also falling from a four-day high at $ 0.6981. The Reserve Bank of New Zealand (RBNZ) decides its policy on Wednesday, with markets forecasting a quarter point increase in interest rates.

“The firm position of the RBA weighs on the AUD,” wrote Commonwealth Bank of Australia strategist Joseph Capurso in a report.

For the RBNZ, “with markets already forecasting a cycle of rate hikes, the likelihood of a significant rise in the NZD is low,” he said.

The dollar gained 0.25% to 111.19 yen, while the euro weakened 0.21% to $ 1.15965.

The British pound edged up 0.15% to $ 1.3629 and hit a three-week high against the euro at 85.11 pence.

As consensus is in favor of further gains for the greenback – with speculators pushing net long bets to their highest level since March 2020 – TD Securities warns that room for maneuver may be limited.

“As the dollar’s short-term bias tends to increase, we are reluctant to continue moving at these levels,” wrote Mark McCormick, TD’s global head of foreign exchange strategy, in a report.

There is already a lot of bad global news valued in US dollars and “the key for the markets in the coming weeks is to determine the extent of the risk premium already embedded in relation to how these factors play out,” he said. McCormick said.

Meanwhile, cryptocurrencies have rallied. Bitcoin, the world’s largest cryptocurrency by market value, hit $ 50,000 for the first time since September 7. read more

Reporting by Ritvik Carvalho Additional reporting by Kevin Buckland in Tokyo Editing by Raissa Kasolowsky and David Goodman

Our Standards: Thomson Reuters Trust Principles.

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