FOREX-Dollar struggles at 1-week lows as Bitcoin scales $48,000

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Saikat Chatterjee
LONDON, Feb 9 (Reuters) - The dollar struggled at a one-week
low on Tuesday as traders grew wary about the prospects for the
greenback against the backdrop of a large U.S. fiscal stimulus
package.
Investors have pushed up the dollar in recent weeks as
Democrats moved to fast-track President Joe Biden's $1.9
trillion COVID-19 relief package, but some analysts say massive
fiscal spending coupled with continued ultra-easy Federal
Reserve monetary policy will be a dollar headwind.
"The view on the effects the package will have on the U.S.
economy differ," Commerzbank strategists said.
"Whereas until recently the prospect of fiscal support
caused positive reactions on the markets, the market no longer
seems to be entirely certain about that any longer."
Having attempted to bounce in the previous session, the
dollar weakened broadly against its peers as U.S. Treasury
yields softened from overnight highs.
The biggest beneficiary of the weakening dollar was
cryptocurrencies with bitcoin BTC=BTSP rocketing above
$48,000, building on a nearly 20% surge overnight after Tesla
Inc TSLA.O announced a $1.5 billion investment in the digital
asset.
The dollar index .DXY was 0.3% lower at 90.73 in early
London trading, having dipped to 90.603 for the first time since
Feb. 1.
Disappointing U.S. jobs data on Friday knocked the wind out
of a two-week run that had lifted the dollar =USD to a more
than two-month high of 91.6.
The euro EUR=EBS rose 0.2% to $1.20775 on Tuesday, up from
a two-month low of $1.9520 touched Friday.
The British pound GBP=D3 revisited its highs since May
2018, climbing to $1.3784 in Asia. It last traded up 0.3% at
$1.3774.

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