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FOREX-Dollar extends decline as risk appetite favors equities

Published 19/02/2021, 16:20
© Reuters.
USD/SEK
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DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

(Adds new quote, changes dateline to NEW YORK (was LONDON),
changes byline)
By Stephen Culp
NEW YORK, Feb 19 (Reuters) - The dollar lost ground on
Friday, extending Thursday's decline as improved risk appetite
attracted buyers to equities and away from the safe-haven
greenback.
The U.S. dollar has been weighed down by a string of soft
labor market data, even as President Joe Biden's proposed $1.9
trillion spending package takes shape.
"What the foreign exchange market is looking at in the short
term, is the dollar is going to be weak despite progress in the
economy because this country has a huge deficit problem," said
Peter Cardillo, chief market economist at Spartan Capital
Securities in New York. "The dollar index could easily test the
lows of last September."
Also weighing on the dollar, the real yield gap between the
United States and Germany is at its tightest since March,
analysts said, despite the recent rise in U.S. Treasury yields.
Bitcoin continues to hover at record highs, and the world's
largest cryptocurrency was last up 2.6% at $52,931.46, nearing
$1 trillion in market capitalization. Its smaller rival, ethereum, was last down 1.0% at
$1,920.13.
The digital currencies have gained about 82% and 1,400%,
respectively, year to date, leading some analysts to warn of a
speculative bubble.
"There may be a place for (cryptocurrencies) somewhere down
the road, but the theories that cryptos will replace paper
currency are far-fetched," Cardillo added. "It's total
speculation at this point and people are going to pay the
price."
The Australian dollar AUD=D3 , which is closely linked to
commodity prices and the outlook for global growth, was last up
1.15% at $0.7858, touching its highest since March 2018.
The New Zealand NZD=D3 dollar also gained, closing in on a
more than two-year high, and the Canadian dollar CAD=D3
advanced as well.
Sterling GBP=D3 rose to an almost three-year high amid
Britain's aggressive vaccination programme. It had last gained
0.34% to $1.40. The euro EUR=EBS showed little reaction to a slowdown in
factory activity indicated by purchasing manager index data,
rising 0.29% to $1.2126.
The yen JPY=EBS , gained ground against the dollar and was
last at 105.495, creeping above its 200-day moving average for
the first time in three days.
========================================================
Currency bid prices at 9:59AM (1459 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.2900 90.5640 -0.29% 0.343% +90.6550 +90.1720
Euro/Dollar EUR=EBS $1.2126 $1.2091 +0.29% -0.75% +$1.2145 +$1.2083
Dollar/Yen JPY=D3 105.4950 105.6600 -0.16% +2.13% +105.7350 +105.2700
Euro/Yen EURJPY= 127.93 127.79 +0.11% +0.80% +127.9500 +127.6600
Dollar/Swiss CHF=EBS 0.8950 0.8960 -0.11% +1.16% +0.8969 +0.8933
Sterling/Dollar GBP=D3 $1.4019 $1.3972 +0.34% +2.61% +$1.4035 +$1.3952
Dollar/Canadian CAD=D3 1.2611 1.2678 -0.51% -0.95% +1.2713 +1.2605
Aussie/Dollar AUD=D3 $0.7858 $0.7769 +1.15% +2.15% +$0.7867 +$0.7758
Euro/Swiss EURCHF= 1.0851 1.0830 +0.19% +0.41% +1.0857 +1.0833
Euro/Sterling EURGBP= 0.8648 0.8647 +0.01% -3.23% +0.8678 +0.8644
NZ NZD=D3 $0.7294 $0.7220 +0.97% +1.52% +$0.7299 +$0.7206
Dollar/Dollar
Dollar/Norway NOK=D3 8.4420 8.4605 -0.25% -1.72% +8.4905 +8.4145
Euro/Norway EURNOK= 10.2368 10.2215 +0.15% -2.20% +10.2633 +10.2040
Dollar/Sweden SEK= 8.2764 8.3129 -0.06% +0.98% +8.3268 +8.2629
Euro/Sweden EURSEK= 10.0333 10.0394 -0.06% -0.43% +10.0610 +10.0288



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World FX rates https://tmsnrt.rs/2RBWI5E
U.S. dollar https://tmsnrt.rs/3bhVLdT
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