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CORRECTED-FOREX-Dollar steadies near seven-week lows as interest rates hold

Published 21/04/2021, 12:50 am
© Reuters.
EUR/USD
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USD/JPY
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USD/CHF
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USD/SEK
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PFE
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DX
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US10YT=X
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BTC/USD
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BTC/USD
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22UAy
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(Corrects strategist's name in second reference)

* Dollar firms after dipping to lowest since March 3

* Euro strengthens

* British pound tests $1.40, then eases

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By David Henry

NEW YORK, April 20 (Reuters) - The dollar steadied on Tuesday amid a mix of gains and losses against major currencies as interest rates in the United States moved in a tight range and the outlook for vaccinations in Europe improved.

After touching its lowest level in nearly seven weeks in Asia trading, the dollar index =USD steadied in Europe and was flat in the morning in New York at 91.0160, down 0.02%.

The euro EUR=EBS rose 0.15% to $1.2053 and the British pound GBP=D3 backed off 0.12% to $1.397 after gaining 1% on Monday.

The dollar has fallen in April as U.S. bond yields retreated from the 14-month highs of 1.776% reached last month. The currency and yield declines have come as evidence mounted that the Federal Reserve would be slower about tightening monetary policy than it had appeared to the market, analysts said.

The 10-year Treasury yield US10YT=RR was trading in a narrow range around 1.60% on Tuesday. currency and interest rate markets could be relatively calm for another few weeks as the Fed and the European Central Bank each take their time about adjusting their rate policies, said Mazen Issa, senior currency strategist at TD Securities.

"There really isn't a strong catalyst in either direction this month to really break us out of ranges," Issa said.

Some encouragement for euro came from the announcement that the European Union has secured an additional 100 million doses of the COVID-19 vaccine produced by BioNTech 22UAy.DE and Pfizer (NYSE:PFE) PFE.N . vaccination news suggests that the pace of Europe's recovery from the pandemic will begin to catch up with the United States and its story of faster growth, Issa said.

"The FX market is moving away from this idea of full-on U.S. exceptionalism to being in a little bit more in limbo now," he said.

Against the Japanese yen, the dollar bounced to 108.822 after having broken below 108 for the first time since March 5.

The commodity-linked Norwegian crown hit its strongest since 2018 versus the dollar, and also reached its strongest since January 2020 versus the euro NOK=D3 EURNOK=D3 .

Bitcoin was up less than 1% and trading around $56,138 BTC=BTSP on Tuesday morning.

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Currency bid prices at 10:30AM (1430 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

91.0160

91.0490

-0.02%

1.150%

+91.2280

+90.8560 Euro/Dollar

EUR=EBS

$1.2053

$1.2036

+0.15%

-1.35%

+$1.2080

+$1.2026 Dollar/Yen

JPY=EBS

108.2150

108.1500

+0.06%

+4.73%

+108.5450 +107.9750 Euro/Yen

EURJPY=

130.42

130.14

+0.22%

+2.76%

+130.9600 +130.0700 Dollar/Swiss

CHF=EBS

0.9142

0.9153

-0.08%

+3.37%

+0.9169

+0.9136 Sterling/Dollar

GBP=D3

$1.3970

$1.3989

-0.12%

+2.27%

+$1.4008

+$1.3950 Dollar/Canadian

CAD=D3

1.2523

1.2531

-0.07%

-1.66%

+1.2540

+1.2479 Aussie/Dollar

AUD=D3

$0.7781

$0.7755

+0.37%

+1.18%

+$0.7815

+$0.7755 Euro/Swiss

EURCHF=

1.1017

1.1016

+0.01%

+1.94%

+1.1047

+1.1010 Euro/Sterling

EURGBP=

0.8625

0.8605

+0.23%

-3.49%

+0.8633

+0.8603 NZ Dollar/Dollar NZD=D3

$0.7213

$0.7180

+0.46%

+0.45%

+$0.7229

+$0.7180 Dollar/Norway

NOK=D3

8.2980

8.2965

+0.08%

-3.30%

+8.3200

+8.2520 Euro/Norway

EURNOK=

10.0007

9.9866

+0.14%

-4.46%

+10.0145

+9.9532 Dollar/Sweden

SEK=

8.4063

8.3980

+0.22%

+2.56%

+8.4295

+8.3615 Euro/Sweden

EURSEK=

10.1320

10.1099

+0.22%

+0.55%

+10.1470

+10.0990

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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