Wednesday, April 21, 2021
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Dollar Down, Near Two-Week Lows as Fed Meeting Minutes reiterate Dovish Stance By

© Reuters.

By Gina Lee – The greenback was down on Thursday morning in Asia, alongside falling Treasury yields, as the U.S. Federal Reserve resolutely saved to a dovish stance within the .

The that tracks the buck in opposition to a basket of different currencies inched down 0.07% to 92.405 by 12 AM ET (4 AM GMT), close to a greater than two-week low.

The pair inched down 0.10% to 109.73.

The pair inched up 0.09% to 0.7621 and the pair inched up 0.10% to 0.7018.

The pair inched up 0.09% to six.5472 and the pair edged up 0.17% to 1.3758.

The Fed’s failed to supply any new catalysts to dictate the market route and remained cautious in regards to the street to restoration from COVID-19. The central financial institution reiterated its pledge to proceed financial coverage assist for the economic system till the restoration was on a extra strong footing, even as unprecedented stimulus measure noticed the U.S. restoration collect tempo.

However, some traders remained optimistic in regards to the U.S. forex’s prospects.

“Hard to argue that the U.S. macro outperformance trade is exhausted; the strong vaccine drive, reopening and stimulus set to produce some exceptionally strong rebound data in the next several months,” Westpac analysts mentioned in a notice, which additionally forecasts a run at 94.5 for the greenback index (DXY).

“Admittedly although, the following DXY upleg might take just a few weeks earlier than it develops momentum – quite a lot of good news is priced in,” the notice added.

U.S. Treasury yields had been additionally on traders’ minds as the benchmark hovered close to 1.67% on Thursday after dipping beneath 1.63% through the earlier session.

Although the market’s route is troublesome to name, Citigroup (NYSE:) Global Markets Japan’s chief forex strategist Osamu Takashima expects the following transfer for the buck to be decrease.

“Current market sentiment is mild risk-on, and under such circumstances, the dollar will weaken gradually – but no big moves,” with the retreat in U.S. yields additionally eradicating a driver for greenback features,” Takashima added.

Across the Atlantic, the euro consolidated across the $1.1865 mark as it rebounded from an virtually five-month low of $1.1704 touched on Mar. 31.

“The vaccination progress in the Eurozone is significantly lagging that of the U.S., and COVID-19 infection rates in the Eurozone are on the rise again… as such, is vulnerable to a move lower towards 1.1700 in the near‑term,” Commonwealth Bank of Australia (OTC:) strategist Joseph Capurso mentioned in a notice.

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