9659002] NEW YORK June 25 – The dollar softened against a basket of currencies yesterday at stake, the US federal reserve can lower interest rates more than once this year, while tensions between Iran and the US provided security support for the yen.
Bitcoin expanded its fiery holiday, when it broke over US $ 11,000 (45,545.50) for the first time since March 2018.
The world's largest and best-known cryptocurrency has risen nearly 200 percent this year as Facebook plans to introduce its Libra Digital Coin Stoked optimism about expanding the use of virtual currencies.
Investors were waiting for US President Donald Trump and China's President Xi Jinping to at least call a ceasefire in his trade war on the G20 sum It is in Japan later this week.
"Today's session is squeezed between Fed's tough trip last week and the G20 later this week," said Brian Daingerfield, head of the G10 FX Strategy, Americas in Stamford, Connecticut.
With the G20, it is difficult to trust the direction of the market. "Markets believe that if Washington and Beijing do not return their heated rhetoric to trading, the Fed will be forced to cut interest rates to prevent a major economic downturn due to higher US import tariffs.
Both China and the US should compromise Trade negotiations, said Chinese vice-president Wang Shouwen yesterday.
Interest rate futures implicated traders price in a 100 percent chance of the Fed would cut prices by the end of July, while betting on high probability, it can probably reduce prices twice after that, According to CME's FedWatch program
Falling US expectations 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 loss of four months. 19659005] At 2.57 pm (1857 GMT), the dollar rate fell 0.24 percent to 95,985, the latest weekly position data confirming the depiction of a weakening d
The hedge funds are weakly weak on the US dollar and have increased their efforts on weaknesses in other currencies such as the Australian dollar as their views on the global economy have surged.
Meanwhile, the yen withdrew from its strongest levels against the dollar since January, after Trump had turned off a US military strike against Iran last week, but the tension between the two nations remains high.
Yesterday, Trump introduced new sanctions against Iran in a bid to curb its nuclear program.
The yen was stable at 107.31 per dollar after reaching 107,045 on Friday when nervous traders piled into safe-haven currency.
Among digital currencies, bitcoin rose 1.44 percent to US $ 10,987.81 on the Luxembourg-based Bitstamp exchange. – Reuters