Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Dollar steady as Fed meeting looms; bitcoin pops above $40,000

06/14/2021 | 03:54pm EDT
FILE PHOTO: An employee of the Korea Exchange Bank counts one hundred U.S. dollar notes during a photo opportunity at the bank's headquarters in Seoul

NEW YORK (Reuters) - The dollar was little changed against a basket of major currencies on Monday as traders awaited a much-anticipated U.S. Federal Reserve meeting later this week that might signal a change in the outlook for U.S. monetary policy.

Currency markets settled in tight ranges with implied volatility plumbing to multi-year lows after last week's strong inflation readings and a dovish European Central Bank meeting failed to dislodge currencies from recent trading levels.

"It's all about the FOMC this week, and we'll be watching to see exactly how much taper talk has really been going on and if it has any impact on the medium term outlook," Brad Bechtel, global head of FX at Jefferies, said in a note.

The dollar index, which measures the greenback against a basket of six currencies, was about flat on the day at 90.512. Last week the index rose 0.4%, its largest weekly change in five weeks.

Muted FX moves in recent weeks crushed the Deutsche Bank FX Volatility Index down to 5.6 on Friday, its lowest in nearly 16 months.

Graphic: Deutsche Bank Currency Volatility Index -

Against the yen the dollar rose 0.38% to a more than one-week high of 110.09 yen.

"A modest uptick in Treasury yields has been supportive of the rate-sensitive pairing," said Ronald Simpson, managing director, global currency analysis at Action Economics.

The dollar's strength against the Japanese currency may be a sign the FX market is looking for a less dovish outcome from the Fed meeting, Simpson said.

The Fed begins a scheduled two-day policy meeting on Tuesday. Nearly 60% of economists in a Reuters poll said a much-anticipated taper announcement will come in the next quarter, despite a patchy recovery in the job market.

Recent data pointing to a surge in inflation has raised concerns that price pressure following the post-COVID-19 economic reopening could force policymakers into an earlier tapering of currency-depreciating stimulus.

Sterling was largely unmoved by Monday's news that Britain is set to delay the end of social distancing measures as the government seeks to contain a rapid rise in COVID-19 infections.

In cryptocurrencies, bitcoin traded above $40,000 for the first time in more than two weeks, before pairing gains to trade at $39,649.03.

(Reporting by Saqib Iqbal Ahmed in New York and Saikat Chatterjee in London; Editing by Catherine Evans, Bernadette Baum and Jonathan Oatis)

By Saqib Iqbal Ahmed and Saikat Chatterjee


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BITCOIN - UNITED STATES DOLLAR -1.71% 38519.97 Real-time Quote.38.13%
BRITISH POUND / US DOLLAR (GBP/USD) 0.16% 1.39128 Delayed Quote.1.62%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.11% 0.79882 Delayed Quote.2.14%
DEUTSCHE BANK AG 0.17% 10.53 Delayed Quote.17.53%
EURO / BRITISH POUND (EUR/GBP) -0.13% 0.85359 Delayed Quote.-4.41%
EURO / US DOLLAR (EUR/USD) 0.01% 1.1876 Delayed Quote.-2.85%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.12% 0.013465 Delayed Quote.-1.75%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.26% 0.70039 Delayed Quote.-2.87%
Latest news "Economy & Forex"
04:32aPRESS RELEASE : WEG Bank AG: Breakthrough in tokenization of equity: WEG Bank AG issues new shares as 'Blockchain Listed Shares'. BaFin approves securities prospectus.
DJ
04:29aKiwi dollar, Aussie jump on central bank talk
RE
04:28aUK's Greggs targets more evening trade after return to profit
RE
04:25aKiwi dollar, Aussie jump on central bank talk
RE
04:19aBMW says chip shortage, raw material prices to hit second half
RE
04:16aBP : boosts payouts after profit jump, transition on track
RE
04:14aFTSE 100 Rises, Led by BP and Standard Chartered
DJ
04:02aStanChart restores payouts but income drop signals challenges ahead
RE
03:52aRwanda raises $620 million through a 10-year Eurobond
RE
03:47aN.Korea wants sanctions eased to restart talks with U.S., S.Korea says
RE
Latest news "Economy & Forex"