* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Saikat Chatterjee
LONDON, May 4 (Reuters) - The U.S. dollar extended gains on
Tuesday, partially unwinding a month long decline as investors
weighed chances that interest rates will be forced higher by a
roaring U.S. economic recovery and awaited upcoming data and
policy speeches for clues.
Tuesday's bounce nearly reversed losses sustained on Monday
after a disappointing U.S. manufacturing survey report, leaving
it 1% above a one-month low struck last week.
Though April's headline survey numbers were lower than
March, but the U.S. recovery remained firmly on track with price
pressures rising, while the Federal Reserve appeared to be in no
hurry to tighten.
Financial conditions are nowhere near the level where the
Fed would consider pulling back its support, New York Fed Bank
President John Williams said on Monday, despite the economy
being set to grow at the fastest rate in decades this year as it
rebounds from the crisis caused by the coronavirus pandemic.
Commerzbank strategists said U.S. data due for durable goods
orders and non-farm payrolls will provide further evidence of
the economic recovery.
"However, as the market expectations are a bit too
optimistic according to our experts it might put pressure on the
dollar despite principally positive results," they said.
The greenback advanced 0.6% versus the Antipodean currencies
and 0.3% against the yen, euro and pound in trade thinned by
holidays in China and Japan.
The dollar index =USD which measures the dollar's value
against a basket of major rivals climbed 0.4% to 91.34, just shy
of a near two-week high.
Elsewhere central bank meetings are in focus. The Australian
dollar weakened as the country's central bank sharply upgraded
forecasts for the local economy yet still predicted no
tightening in its super-loose policy until at least 2024.
Sterling GBP=D3 dipped marginally to $1.3870 ahead of a
Bank of England meeting on Thursday. Analysts reckon the bank
might announce a slowdown in its bond buying programme as
vaccinations have bolstered Britain's economy.
Elsewhere cryptocurrency ether ETH=BTSP powered to another
record peak, this time nearing $3,500 as speculators drive
white-hot crypto markets higher. It last sat at $3,313.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>