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FOREX-Dollar extends rebound as investors await U.S. stimulus details, bitcoin bounces

Published 01/14/2021, 09:41 AM
Updated 01/14/2021, 09:50 AM
© Reuters.
DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Kevin Buckland
TOKYO, Jan 14 (Reuters) - The dollar extended its rebound
from near three-year lows versus major peers on Thursday,
supported by higher U.S. yields, as President-elect Joe Biden
prepared to outline his plans for massive fiscal stimulus.
The dollar index =USD held onto gains made on Wednesday in
early Asian trading as investors continued to unwind bearish
bets. The dollar has risen in four of the past five trading
sessions as the prospect of more stimulus has weighed on U.S.
government bonds, sending the benchmark Treasury yield above 1%
for the first time since March.
Bitcoin BTC=BTSP also held on to 10% gains made on
Wednesday as it rebounded after sliding almost $12,000 from an
all-time high of $42,000 hit last week.
Biden will give details on Thursday of a plan for
"trillions" of dollars in pandemic relief. Expectations that
more stimulus will fuel faster growth has lifted U.S. yields,
which in turn supported the dollar. However many analysts expect the currency's bounce to be
temporary, as a build up of bearish dollar positions are shaken
out. Longer term, they expect more U.S. stimulus to support risk
sentiment, weighing on the greenback, which is traditionally
considered a safe-haven.
"I think positioning in risk assets is becoming a concern,
so there could be a squeeze in the dollar near-term," said
Shusuke Yamada, chief Japan FX strategist at Bank of America in
Tokyo.
"I am focusing on gradual dollar weakness in 2021."
FX speculators have been net short the dollar since
mid-March, as investors' surging appetite for riskier assets
hurt demand for the greenback. The dollar index traded little changed at 90.292 after
adding 0.3% overnight. It fell as low as 89.206 on Jan. 6 for
the first time since March 2018.
The euro EUR=EBS was largely steady at $1.2164 after
sliding 0.4% on Wednesday.
The greenback was little changed at 103.925 yen JPY=EBS ,
following a 0.1% rise previously.
Bitcoin was 0.6% higher at $37,655 on Thursday, up from as
low as $30,261.13 on Jan. 11.


========================================================
Currency bid prices at 10:06AM (106 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2165 $1.2159 +0.05% -0.43% +1.2171 +1.2155
Dollar/Yen JPY=D3 103.8670 103.8850 +0.01% +0.59% +103.9200 +103.8150
Euro/Yen EURJPY= 126.37 126.28 +0.07% -0.43% +126.4300 +126.2300
Dollar/Swiss CHF=EBS 0.8871 0.8875 -0.04% +0.28% +0.8877 +0.8871
Sterling/Dollar GBP=D3 1.3651 1.3637 +0.10% -0.09% +1.3651 +1.3644
Dollar/Canadian CAD=D3 1.2686 1.2701 -0.10% -0.36% +1.2699 +1.2688
Aussie/Dollar AUD=D3 0.7749 0.7734 +0.20% +0.74% +0.7750 +0.7733
NZ NZD=D3 0.7191 0.7175 +0.24% +0.15% +0.7193 +0.7182
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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