* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Focus on Fed meeting ending Wednesday
* German Ifo data short of expectations
* Bitcoin reclaims $50,000 bar
(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 26 (Reuters) - The dollar rose from an eight-week low against the euro on Monday, also
gaining against major currencies such as the yen and Swiss franc, with investors consolidating positions
ahead of the Federal Reserve's monetary policy meeting this week.
The dollar has fallen nearly 3% since late March as U.S. Treasury yields, which had risen this year and
supported the greenback, traded in narrow ranges.
"Dollar bears are treading a bit carefully ahead of the Fed decision," said Joe Manimbo, senior market
analyst at Western Union Business Solutions. "There is a risk that the Fed this week could signal scope for
tapering policy later this year."
The Federal Open Market Committee ends its two-day meeting on Wednesday, and while no major policy
changes are expected, investors will pay close attention to comments from Chairman Jerome Powell.
Powell is likely to face questions over whether an improving labor market and rising coronavirus
vaccinations warrant a withdrawal of monetary easing. Most analysts though expect him to say such talk is
premature, which could put downward pressure on Treasury yields and the dollar.
Edward Moya, senior market analyst at OANDA, said while the Fed could stay the course this week, it
could be a different story at the June meeting given the optimism surrounding robust COVID-19 vaccine
distribution.
"That will complicate the outlook for the dollar," Moya noted, adding that initially people were
expecting the Fed to keep its easy monetary policy stance for some time. But the success in U.S.
distribution of vaccines, plus the improving economic outlook have prompted investors to believe that the
Fed may taper its asset purchases sooner rather than later.
"A lot of that could derail the dollar view that its day of reckoning is here," Moya said.
In afternoon trading, the euro fell 0.1% against the dollar to $1.2091 EUR=EBS after disappointing
euro zone data.
German business morale improved by less than expected in April as a third wave of COVID-19 infections
and problems with supply of components in the industrial sector seemed to slow the recovery in Europe's
largest economy.
Analysts, however, kept focusing on the general direction of travel of the economy, seen firmly on its
way out of the COVID-19 crisis.
The dollar index =USD was down slightly at 90.828, partly recovering from an eight-week low.
Against the yen, the dollar was up 0.2% at 108.11 JPY=EBS .
The dollar also gained 0.1% versus the Swiss franc to 0.9141 franc CHF=EBS .
In emerging markets, the Turkish lira TRYTOM=D3 weakened to as much as 8.48 versus the dollar, close
to its record low of 8.58 reached in early November. The dollar though was last down 1.6% at 8.2850.
The lira is among the worst performers in emerging markets this year due to worsening relations with the
United States and worries about central bank policy.
In the cryptocurrency market, bitcoin BTC=BTSP reclaimed the $50,000 mark, jumping 10% and on course
to snap five straight days of losses exacerbated by U.S. President Joe Biden's plan to raise capital gains
taxes for wealthy investors. It was last up 10.5% at $54,288.
========================================================
Currency bid prices at 2:49PM (1849 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.8180 90.8920 -0.07% 0.930% +90.9890 +90.6790
Euro/Dollar EUR=EBS $1.2090 $1.2097 -0.05% -1.05% +$1.2117 +$1.2061
Dollar/Yen JPY=EBS 108.1150 107.8600 +0.25% +4.65% +108.1950 +107.6500
Euro/Yen EURJPY= 130.71 130.46 +0.19% +2.99% +130.7300 +130.2200
Dollar/Swiss CHF=EBS 0.9143 0.9137 +0.08% +3.36% +0.9165 +0.9122
Sterling/Dollar GBP=D3 $1.3898 $1.3881 +0.13% +1.73% +$1.3929 +$1.3867
Dollar/Canadian CAD=D3 1.2407 1.2475 -0.53% -2.55% +1.2490 +1.2384
Aussie/Dollar AUD=D3 $0.7802 $0.7746 +0.73% +1.43% +$0.7815 +$0.7735
Euro/Swiss EURCHF= 1.1054 1.1052 +0.02% +2.29% +1.1071 +1.1043
Euro/Sterling EURGBP= 0.8698 0.8715 -0.20% -2.67% +0.8719 +0.8683
NZ NZD=D3 $0.7238 $0.7195 +0.65% +0.84% +$0.7243 +$0.7191
Dollar/Dollar
Dollar/Norway NOK=D3 8.2815 8.2895 -0.05% -3.51% +8.3110 +8.2720
Euro/Norway EURNOK= 10.0149 10.0500 -0.35% -4.34% +10.0516 +10.0069
Dollar/Sweden SEK= 8.3781 8.3776 -0.14% +2.22% +8.4040 +8.3658
Euro/Sweden EURSEK= 10.1285 10.1422 -0.14% +0.00% +10.1485 +10.1220
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World FX rates https://tmsnrt.rs/2RBWI5E
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