Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Dollar gains as Treasury yields rise; bitcoin breaches $50,000

02/16/2021 | 06:38pm EST
U.S. one dollar banknotes are seen in front of displayed stock graph

NEW YORK (Reuters) - The U.S. dollar rebounded from three-week lows on Tuesday as Treasury yields hit pre-pandemic highs and bullish economic sentiment boosted investor risk appetite.

Bitcoin also surpassed $50,000 to a hit record high as it continued to gain credibility among companies and investors.

Benchmark 10-year Treasury yields touched their highest level since February 2020, adding upward pressure to the greenback as economic optimism fueled the reflation trade.

That optimism was echoed by St. Louis Federal Reserve President James Bullard, who said in an interview on CNBC that U.S. financial conditions were "generally good," and that inflation was likely to heat up this year.

The New York Fed's upbeat Empire State manufacturing report offered a rosier economic picture than suggested by data released last week.

"High yields are providing the dollar with a little bit of support," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. "But a lot of folks believe rising yields are going to be accompanied with higher inflation."

"I'm not sure today's action is telling us a lot about the overall trend," Osborne added. "I think the dollar is likely to trade more softly going forward."

Against a basket of its rivals, the dollar gained 0.21% to 90.508, after earlier falling to 90.117, its lowest level since Jan. 26.

Bitcoin breached $50,000 to touch an all-time high of $50,602, but had last pulled back to $48,675.18. The world's largest cryptocurrency has risen around 68% so far this year, boosted by Tesla Inc's announcement that it had bought $1.5 billion in bitcoin.

Despite bitcoin's rally, Osborne was skeptical.

"As larger corporations take an interest it does give it more legitimacy, but it still seems like a speculative, retail trade at this point," he said.

The euro reversed its gains against the strengthening dollar and was last down 0.10%. Rising oil prices briefly lifted the Canadian dollar and Norwegian crown.

The dollar also gained on the safe-haven Japanese yen, which fell through its 200-day moving average against the dollar and struck multiyear lows against the euro, Aussie and Swiss franc.

Sterling pared its gains against the dollar, and was last essentially flat against the greenback after touching its highest level since April 2018 due to Britain's vaccine rollout progress.

The risk-sensitive Australian dollar briefly hit a one-month high of $0.7805 and the kiwi touched a five-week peak of $0.7268, before retreating.

(GRAPHIC: Monthly FX performance Feb 2021 - https://fingfx.thomsonreuters.com/gfx/mkt/xklpyodjopg/Monthly%20FX%20performance%20Feb%202021.JPG)

(Reporting by Stephen Culp; editing by Jonathan Oatis)

By Stephen Culp

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) -0.31% 0.97066 Delayed Quote.-0.80%
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) -0.05% 83.544 Delayed Quote.4.68%
AUSTRALIAN DOLLAR / NEW ZEALAND DOLLAR (AUD/NZD) 0.01% 1.07399 Delayed Quote.0.12%
AUSTRALIAN DOLLAR / SWISS FRANC (AUD/CHF) 0.10% 0.71779 Delayed Quote.4.87%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.44% 0.76761 Delayed Quote.-0.24%
BITCOIN - EURO -0.20% 42839.75 Real-time Quote.81.81%
BITCOIN - UNITED STATES DOLLAR -0.75% 50830.47 Real-time Quote.77.26%
BRITISH POUND / AUSTRALIAN DOLLAR (GBP/AUD) 0.35% 1.80287 Delayed Quote.1.51%
BRITISH POUND / CANADIAN DOLLAR (GBP/CAD) 0.03% 1.75005 Delayed Quote.0.78%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.28% 86.06 Delayed Quote.5.58%
CANADIAN DOLLAR / SWISS FRANC (CAD/CHF) 0.42% 0.73945 Delayed Quote.5.78%
EURO / AUSTRALIAN DOLLAR (EUR/AUD) -0.11% 1.54516 Delayed Quote.-2.28%
LONDON BRENT OIL -3.35% 68.1 Delayed Quote.29.98%
NEW ZEALAND DOLLAR / CANADIAN DOLLAR (NZD/CAD) -0.32% 0.90371 Delayed Quote.-0.38%
TESLA, INC. -2.94% 582.2529 Delayed Quote.-15.26%
WTI -3.38% 64.88 Delayed Quote.33.26%
Latest news "Economy & Forex"
01:47pCongress Is Poised to Upend Tax Season With New Break for Unemployment Benefits
01:40pNew U.S. COVID-19 cases fall 12% last week, vaccinations top 2 million a day
01:38pEXCLUSIVE : Canada weighs tighter rules for grow-your-own pot producers
01:35pKOSS  : GameStop shares surge over 40% after Cohen tapped to lead e-commerce pivot
01:33pU.S. CDC Says Delivered 116,378,615 Doses Of Covid-19 Vaccine As Of March 8 Versus 116,363,405 Doses As Of March 7
01:33pU.s. cdc says 7,405,816 doses of covid-19 vaccine administered in long-term care homes as of march 8 vs 7,389,102 doses administered as of march 7
01:33pU.s. cdc says 31,285,186 individuals have received two doses of covid-19 vaccine as of march 8 vs 30,686,881 individuals as of march 7
01:32pU.s. cdc says 60,005,231 individuals have received one or more doses of covid-19 vaccine as of march 8 vs 58,873,710 individuals as of march 7
01:31pU.s. cdc says administered 92,089,852 doses of covid-19 vaccine as of march 8 vs 90,351,750 doses administered as of march 7
01:31pU.S. CDC Reports Total Deaths Of 523,850 Due To Coronavirus As Of Yesterday
Latest news "Economy & Forex"