The US dollar fell to its lowest level in 6 years against the Canadian dollar, and approached its lowest levels in several months against European currencies today, Tuesday, as US Treasury yields stabilized amid renewed expectations that the United States will not raise interest rates soon.
On Monday, Federal Reserve Bank of Dallas President Robert Kaplan said he does not expect interest rates to rise until next year, leading to a further decline in bets that inflationary pressures may force the Fed to act sooner. Read also With the development of financial technology in China, what will the future of the dollar be?The “green paper” strengthens its strength in light of the Corona … the increase in the share of the US dollar in global reserves Le Monde: This is how the US dollar exposed the weakness of the United StatesIn light of the US economic crisis, will the dollar lose its international status?
“The dollar is on its knees and it appears that this is a direct result of investor sentiment towards inflation expectations in the United States and the reaction of the Federal Reserve,” said Valentin Marinoff, director of research for the ten most traded currencies at Credit Agricole.
The US Treasury yields for 10 years settled at 1.6471%, continuing their retreat from the 5-week high reached last week.
The dollar traded at 1.22 against the euro, which reached its highest level against the dollar since February 25, and the pound sterling rose to $ 1.4198, its strongest level since late February.
The pound sterling recovered with investor optimism about the gradual lifting of the strict restrictions related to the Coronavirus, and the Canadian dollar reached its highest level in 6 years at 1.2013 against the dollar, supported by high oil prices, and against the Japanese yen the dollar lost 0.3% to fall To 108.96 yen.
Some investors had already lowered their expectations of a federal interest rate hike this year, and Kaplan’s comments gave dealers a greater incentive to sell the dollar.
The yuan rose in internal transactions to 6.4279 per dollar, not far from the 3-year high it reached last week, and the Australian and New Zealand dollars rose against the US dollar.
In the cryptocurrency market, it rose in the form of 3.3% to $ 45023.53, but remained close to its lowest level in 3 months after Elon Musk, head of Tesla, reduced his enthusiasm for this digital asset.
And rival digital currency Ethereum, linked to the Ethereum blockchain, rose 6.5% to $ 3,494, to stabilize after hitting a two-week low on Monday.