* Traders reassess pace of U.S. recovery on weak jobs data
* Bitcoin set for biggest weekly advance since turn of year
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, Feb 12 (Reuters) - The dollar headed for its first
losing week in three as new signs of weakness in the U.S. jobs
market dented investor expectations about the pace of economic
recovery from the pandemic.
Bitcoin hit a new all-time high of $49,000 on Friday after
BNY Mellon became the latest firm to embrace cryptocurrencies,
saying it will form a new unit to help clients hold, transfer
and issue digital assets. "With names like BONY getting in, it's going to lay the
groundwork for even more mainstream adoption of bitcoin," said
Jeffrey Wang, head of Americas at crypto finance service
provider Amber Group.
"Medium term, the momentum is very strong and the market is
going to want to test $50,000."
The dollar remained on the back foot on Friday in Asia,
pinned near two-week lows, after the release of
weaker-than-expected weekly U.S. jobless claims data the
previous day. That added to recent concerns that the dollar's previous
rally had priced in too fast a pace of rebound for the U.S.
economy.
The dollar index =USD edged up less than 0.1% to 90.49 in
holiday-thinned trade due to the Lunar New Year, and was on
track to fall 0.6% for the week.
There has been a divergence in views among traders this year
over just how U.S. President Joe Biden's planned $1.9 trillion
fiscal stimulus package will affect the dollar.
Some see it as bolstering the currency as it should speed a
U.S. recovery relative to other countries, while others reckoned
it would feed a global reflation narrative that should lift
riskier assets at the dollar's expense.
"The U.S. economy will outperform most thanks to fiscal
stimulus and faster vaccine deployment, but ongoing reflationary
fiscal and monetary policy will leave DXY on a sustained medium
term bear trend," Westpac strategists wrote of the dollar index
in a client note.
The euro EUR=EBS slipped less than 0.1% to $1.2122,
consolidating for a third day near that level as it headed for a
0.6% weekly advance.
The dollar was mostly flat at 104.795 yen JPY=EBS , down
0.5% from the end of last week.
Bitcoin BTC=BTSP last traded 1.7% weaker at $47,170 after
trading at a record high of exactly $49,000.00 on Bitstamp.
The world's most popular cryptocurrency is on course for a
nearly 22% weekly advance, its biggest since the period ended
Jan. 3.
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Currency bid prices at 2:11PM (511 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2122 $1.2133 -0.09% -0.79% +1.2135 +1.2119
Dollar/Yen JPY=D3 104.7950 104.7300 +0.07% +1.46% +104.8270 +104.7850
Euro/Yen EURJPY= 127.04 127.05 -0.01% +0.09% +127.1400 +127.0200
Dollar/Swiss CHF=EBS 0.8905 0.8898 +0.08% +0.66% +0.8908 +0.8902
Sterling/Dollar GBP=D3 1.3790 1.3816 -0.17% +0.96% +1.3815 +1.3786
Dollar/Canadian CAD=D3 1.2721 1.2703 +0.16% -0.09% +1.2727 +1.2695
Aussie/Dollar AUD=D3 0.7743 0.7755 -0.14% +0.67% +0.7755 +0.7736
NZ NZD=D3 0.7216 0.7227 -0.14% +0.50% +0.7231 +0.7210
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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