- Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Updates to late afternoon)
The dollar edged lower on Monday as inflation jitters, exacerbated by record high prices paid in a regional U.S. manufacturing survey, benefited riskier currencies at the greenback's expense.
But the U.S. 10-year Treasury yield US10YT=RR was little changed as market participants sought clues regarding the Federal Reserve's tolerance for near- and medium-term inflation.
"Given that since the dollar's sell-off last week it hasn't been able to bounce much, it tells me that the driver is not the foreign currency market but the interest rate market," said Marc Chandler, chief market strategist at Bannockburn Forex in New York. "And without higher interest rates it's hard to see how the dollar gets much traction."
The U.S. Federal Reserve is expected to release the minutes from its April monetary policy on Wednesday, which market participants will scrutinize for clues regarding the central bank's views on current inflation spikes.
"The Fed is still saying they're going to be very patient," Chandler added. "If the U.S. doesn't offer higher interest rates, the dollar bears the burden, and that's where we are now."
The Empire State report from the New York Federal Reserve showed a survey record high of prices paid by manufacturers in New York state as materials producers struggle to keep up with booming demand.
The dollar index =USD was last down 0.14% at 90.157. The euro EUR=EBS gained 0.09% to $1.2159 and the dollar fell 0.15% to 109.175 Japanese yen JPY=D3 .
As economies re-open for business, resurgent demand combined with supply shortages has put commodity prices on an upward trajectory.
Strengthening crude oil prices LCOc1 boosted the Canadian dollar CAD=D3 but the Norwegian crown NOK=D3 lost ground against the greenback.
And despite higher metal prices, the Australian dollar AUD=D3 also edged lower. Chandler believes central bank policy is taking the lead in influencing the value of currencies typically sensitive to commodity prices.
Bitcoin BTC=BTSP dropped to a three-month low after Tesla Inc TSLA.O boss Elon Musk suggested over the weekend that the electric automaker may have already sold some of its holdings in the digital currency.
======================================================== Currency bid prices at 3:06PM (1906 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 90.1570 90.2950 -0.14% 0.196% +90.4290 +90.1440 Euro/Dollar EUR=EBS $1.2159 $1.2147 +0.09% +0.00% +$1.2169 +$1.2127 Dollar/Yen JPY=D3 109.1750 109.3350 -0.15% +5.70% +109.4950 +109.0950 Euro/Yen EURJPY= 132.74 132.78 -0.03% +4.59% +132.9400 +132.5200 Dollar/Swiss CHF=EBS 0.9026 0.9012 +0.17% +0.00% +0.9028 +0.9003 Sterling/Dollar GBP=D3 $1.4142 $1.4098 +0.32% +3.52% +$1.4146 +$1.4078 Dollar/Canadian CAD=D3 1.2062 1.2104 -0.34% +0.00% +1.2136 +1.2061 Aussie/Dollar AUD=D3 $0.7770 $0.7781 -0.13% +0.00% +$0.7787 +$0.7731 Euro/Swiss EURCHF= 1.0975 1.0948 +0.25% +0.00% +1.0975 +1.0943 Euro/Sterling EURGBP= 0.8595 0.8611 -0.19% +0.00% +0.8631 +0.8595 NZ NZD=D3 $0.7216 $0.7250 -0.47% +0.00% +$0.7249 +$0.7182 Dollar/DollarDollar/Norway NOK=D3 8.2485 8.2265 +0.41% +0.00% +8.2985 +8.2200 Euro/Norway EURNOK= 10.0305 9.9920 +0.39% +0.00% +10.0746 +9.9869 Dollar/Sweden SEK= 8.3205 8.3341 +0.01% +0.00% +8.3679 +8.3213 Euro/Sweden EURSEK= 10.1181 10.1171 +0.01% +0.00% +10.1584 +10.1104 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
