NEW YORK on June 25 – The dollar softened against a basket of currencies yesterday on ventures, the US central bank could cut interest rates more than once this year, while tensions between Iran and the United States provided protection for the Yen accidents.
Bitcoin extended its dry weekend, when it broke over US $ 11,000 (45,545.50) for the first time since March 2018.
The world's largest and most famous crypto competition has risen nearly 200 percent this year as Facebook's plan to introduce its Libra digital coin protection optimism about expanding the use of virtual currencies.
Investors were waiting for US President Donald Trump and China's President Xi Jinping to call at least one guardian in his trade war at the G20 summit in Japan later this week.
"Today's meeting is split between Fed's tough tour last week and G20 later this week," said Brian Daingerfield, director of the G10 FX Strategy, Americas in Stamford, Con necticut.
"With the G20 it is difficult to have confidence in the direction of the market." Markets believe that if Washington and Beijing fail to call back their heated rhetoric on trade, the Fed will be forced to cut interest rates to prevent a broader economic slowdown due to higher US import duties.
Both China and the United States should compromise on trade negotiations, said Chinese Deputy Minister of Commerce Wang Shouwen yesterday.
Interest futures implicated traders priced in a 100 percent chance The Fed would cut prices by the end of July, while betting with the likelihood it could cut prices twice after that, according to the CME Group's FedWatch program.
Expectations of falling US interest rates have weakened the dollar. An index that tracks the dollar against a group of six currencies fell 1.57 percent last week, the largest weekly table of four months.
At 257:00 (1857 GMT), the dollar rate slowed 0.24 percent at 95.985. The latest weekly positioning data confirmed the view of a weakening dollar.
Hedge funds have turned slightly bearish on the US dollar and have increased investment in weaknesses in other currencies, such as the Australian dollar, as their global economy prospects have soured.
Meanwhile, the yen withdrew from its strongest levels against the dollar since January, after Trump interrupted a US military strike against Iran last week, but tensions between the two nations are still high.
Trump yesterday imposed new sanctions on Iran in a bid to limit its nuclear program.
The yen was steady at 107.31 per dollar after reaching 107,045 on Friday when nervous traders piled into the currency field.
Among digital currencies, bitcoin rose 1.44 percent to US $ 10,987.81 on the Luxembourg-based Bitstamp exchange. – Reuters