{"id":112882,"date":"2021-02-15T10:50:52","date_gmt":"2021-02-15T10:50:52","guid":{"rendered":"https:\/\/precoinnews.com\/?p=112882"},"modified":"2021-02-15T10:50:52","modified_gmt":"2021-02-15T10:50:52","slug":"dollar-on-back-foot-as-market-optimism-lifts-riskier-currencies","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/dollar-on-back-foot-as-market-optimism-lifts-riskier-currencies\/","title":{"rendered":"Dollar on back foot as market optimism lifts riskier currencies"},"content":{"rendered":"
LONDON (Reuters) – The safe haven dollar started the week pinned near two-week lows on Monday, as optimism about COVID-19 vaccine rollouts and a planned $1.9 trillion U.S. stimulus package drove up riskier currencies and stock markets across Europe and Asia.<\/p> Among the gainers versus the weaker greenback, the British pound broke $1.39 for the first time in nearly three years while commodity currencies strengthened, including the South African rand which hit a fresh one-year high.<\/p>\n The improved risk appetite was also reflected in equities, with European indexes rising after Japanese stocks surged to a more than 30-year high earlier in the day.<\/p>\n Many financial markets in Asia remained closed on Monday for Lunar New Year, while U.S. stock markets will be shut for Presidents Day.<\/p>\n The dollar index slipped 0.1%, close to last week\u2019s low of 90.249 – a level unseen since Jan. 27.<\/p>\n Analysts at MUFG said the dollar could weaken further if market optimism held.<\/p>\n \u201cWe believe there is plenty yet to go in the so-called \u2018reflation trade\u2019 with market participants under-estimating the willingness of global policymakers to let the economy run hot and fuel stronger than expected global growth through the remainder of the year,\u201d the analysts said in a note.<\/p>\n Bitcoin remained volatile, retreating to as low as $45,914.75 a day after reaching a record $49,714.66.<\/p>\n The world\u2019s most popular cryptocurrency had rallied 25% last week, boosted by endorsements from Tesla and BNY Mellon.<\/p>\n The Chinese yuan reached its strongest level since June 2018 at 6.4010 per dollar in the offshore market.<\/p>\n The euro edged 0.2% higher to $1.21410, extending last week\u2019s 0.6% advance.<\/p>\n The dollar rose a third of a percent to 105.28 yen, recovering some of the previous week\u2019s losses.<\/p>\n