Sumary of Euro hovers near 3-1/2-mth low, anticipates dovish ECB:
- Breadcrumb Trail Links PMN Business Author of the article: Reuters Sujata Rao Article content LONDON — The euro traded just off 3-1/2 month lows versus the dollar on Thursday before a potentially momentous meeting of the ECB, while growth-focused currencies such as the Australian dollar gained as a global risk sell-off abated further.
- The U.S. dollar index and the yen which rose earlier this week to the highest since early-April and end-May respectively, retreated as strong earnings lifted stock markets and bond yields, and induced investors to trickle out of the safe-haven assets they had piled into.
- Article content They also bought back into cryptocurrencies, with bitcoin rising further above the $30,000 mark, especially after Tesla CEO Elon Musk said the company would “most likely” resume accepting bitcoin for payment.
- The Australian dollar changed hands at $0.738, from an eight-month low of $0.72895 the previous day, despite half the Australian population being under COVID lockdowns.
- It also firmed against the yen which was at 81.42 , from a 5-1/2 month peak of 79.85. The gains in higher-risk assets come too after robust company earnings lifted Wall Street and European bourses, allowing investors to look past concerns that the Delta Covid-19 variant would dampen the economic recovery.
- “The consensus is that (the Delta strain) does not pose an immediate risk to the recovery,” delaying reopening by three months at the most as countries ramp up vaccination drives,” National Australia Bank analyst Tapas Strickland told clients.
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