FOREX-Dollar dips to one-week lows as stocks hit records

(New throughout, updates prices, changes byline, dateline)
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Karen Brettell
NEW YORK, April 5 (Reuters) - The dollar dipped to one-week
lows against a basket of currencies on Monday as stocks hit
record highs, and as investors waited on the next catalyst to
drive direction.
The dollar has rebounded this year along with rising U.S.
Treasury yields as investors bet on faster U.S. economic growth
and higher inflation as the economy reopens after
COVID-19-related business shutdowns.
The greenback has generally risen at the same time as stocks
gain. Investors are now watching to see if that relationship
continues as it may indicate a shift in how the currency
responds to improving risk appetite.
“The trickiest thing for markets right now is to figure out
what the dollar's sensitivity is to good U.S. economic news,”
said Erik Nelson, a macro strategist at Wells Fargo in New York.
“This is a huge question because if we're entering a phase
where the dollar is no longer a safe haven and more of a ‘risk
on' currency, that's big regime change,” Nelson said.
The dollar fell on Monday as stocks gained. It was last down
0.20% against a basket of currencies =USD at 92.77. It has
fallen from 93.44 on Wednesday, which was the highest since Nov.
5.
The greenback had rallied on Friday after data showed that
the U.S. economy created the most jobs in seven months in March
as more Americans got vaccinated and the government doled out
additional pandemic relief money, marking the start of what
could be the strongest economic performance this year in nearly
four decades. Trading volumes were light on Friday, however, with many
traders out for the Good Friday holiday. Financial markets in
Britain were also closed on Monday.
The euro EUR=EBS gained 0.29% to $1.1786. Sterling
GBP=D3 rose 0.42% to 1.3886. The Australian dollar AUD=D3 ,
which typically rises when risk appetite is strong, gained 0.64%
to $0.7639.
Investors are also focused on U.S. President Joe Biden's
proposed infrastructure plan, which would involve raising
corporate taxes to pay for the new spending.
Biden would be willing to push through his $2 trillion
infrastructure plan without the support of Republican lawmakers
if he cannot reach a bipartisan deal, Energy Secretary Jennifer
Granholm said on Sunday. Currency bid prices at 9:43 AM (1343 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 92.7680 92.9660 -0.20% 3.097% +93.1130 +92.7770
Euro/Dollar EUR=EBS $1.1786 $1.1752 +0.29% -3.53% +$1.1787 +$1.1738
Dollar/Yen JPY=D3 110.3900 110.6700 -0.23% +6.89% +110.7400 +110.4100
Euro/Yen EURJPY= 130.11 130.13 -0.02% +2.51% +130.2500 +129.8400
Dollar/Swiss CHF=EBS 0.9393 0.9408 -0.15% +6.18% +0.9438 +0.9394
Sterling/Dollar GBP=D3 $1.3886 $1.3825 +0.42% +1.62% +$1.3887 +$1.3790
Dollar/Canadian CAD=D3 1.2535 1.2585 -0.39% -1.56% +1.2594 +1.2526
Aussie/Dollar AUD=D3 $0.7639 $0.7591 +0.64% -0.69% +$0.7640 +$0.7599
Euro/Swiss EURCHF= 1.1071 1.1083 -0.11% +2.44% +1.1094 +1.1072
Euro/Sterling EURGBP= 0.8486 0.8497 -0.13% -5.05% +0.8512 +0.8473
NZ NZD=D3 $0.7053 $0.7017 +0.52% -1.78% +$0.7058 +$0.7017
Dollar/Dollar
Dollar/Norway NOK=D3 8.5160 8.5235 +0.02% -0.72% +8.5510 +8.5250
Euro/Norway EURNOK= 10.0383 10.0261 +0.12% -4.10% +10.0532 +10.0313
Dollar/Sweden SEK= 8.7303 8.7089 +0.29% +6.51% +8.7581 +8.6944
Euro/Sweden EURSEK= 10.2899 10.2603 +0.29% +2.12% +10.2967 +10.2627