- Dollar inches higher, commodity currencies drop
- Yuan falls after mixed Chinese data
- Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Updates to U.S. stock market open, changes dateline (previously: LONDON), changes byline)
The dollar on Monday held steady near recent lows as new restrictions in Asia to contain COVID-19 and mixed economic signals from China supported safe-haven currencies, while bitcoin extended its slide.
The steady U.S. 10-year Treasury yield US10YT=RR , along with new outbreaks in Singapore and Taiwan provided some support the dollar against a basket of rival currencies .DXY .
Still, the greenback is struggling to gain momentum. "The U.S. dollar is lacking the support from yields that it needs to turn this weakness around," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. "For the summer and into the Fall the U.S. dollar is likely to stay soft."
The dollar index =USD was last down 0.04% at 90.247. The euro EUR=EBS gained 0.02% to $1.2149 and the dollar fell 0.16% to 109.155 Japanese yen JPY=D3 .
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.
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 thinking about inflation spikes and the ongoing economic recovery.
"Last week a whole range of Fed speakers were downplaying inflation, stating that it's temporary, that will not deflect the Fed's course and now is not the time to start discussing reducing support to the economy," Osborne added. "We're not likely to see change in Fed policy for quite some time."
Still, resurgent demand combined with supply shortages has put commodity prices on an upward trajectory.
Strengthening prices for metals and crude oil LCOc1 have supported commodity-sensitive currencies. The Canadian dollar CAD=D3 , the Australian dollar AUD=D3 and the Norwegian crown NOK=D3 all gained against the U.S. dollar.
"The current environment of low interest rates, low volatility and increasing commodity prices should be good for the commodity currencies," Osbourne added.
======================================================== Currency bid prices at 9:48AM (1348 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 90.2470 90.2950 -0.04% 0.296% +90.4290 +90.1750 Euro/Dollar EUR=EBS $1.2149 $1.2147 +0.02% +0.00% +$1.2169 +$1.2127 Dollar/Yen JPY=D3 109.1550 109.3350 -0.16% +5.68% +109.4950 +109.0950 Euro/Yen EURJPY= 132.61 132.78 -0.13% +4.48% +132.9400 +132.5200 Dollar/Swiss CHF=EBS 0.9009 0.9012 -0.03% +0.00% +0.9028 +0.9003 Sterling/Dollar GBP=D3 $1.4106 $1.4098 +0.06% +3.25% +$1.4119 +$1.4078 Dollar/Canadian CAD=D3 1.2092 1.2104 -0.10% +0.00% +1.2136 +1.2087 Aussie/Dollar AUD=D3 $0.7755 $0.7781 -0.33% +0.00% +$0.7787 +$0.7731 Euro/Swiss EURCHF= 1.0944 1.0948 -0.04% +0.00% +1.0957 +1.0943 Euro/Sterling EURGBP= 0.8611 0.8611 +0.00% +0.00% +0.8631 +0.8602 NZ NZD=D3 $0.7201 $0.7250 -0.70% +0.00% +$0.7249 +$0.7182 Dollar/DollarDollar/Norway NOK=D3 8.2690 8.2265 +0.57% +0.00% +8.2985 +8.2200 Euro/Norway EURNOK= 10.0464 9.9920 +0.54% +0.00% +10.0746 +9.9869 Dollar/Sweden SEK= 8.3385 8.3341 +0.13% +0.00% +8.3679 +8.3213 Euro/Sweden EURSEK= 10.1306 10.1171 +0.13% +0.00% +10.1584 +10.1104 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
