FOREX

FOREX-Dollar rebound falters as Fed's Powell strikes dovish tone – Reuters


    * Details of Biden's stimulus plan fail to lift greenback
    * Bitcoin eyes record high above $42,000 after $12,000
plunge
    * Graphic: World FX rates tmsnrt.rs/2RBWI5E

    By Kevin Buckland
    TOKYO, Jan 15 (Reuters) - The dollar's rebound from a nearly
three-year low faltered after Federal Reserve Chair Jerome
Powell said on Thursday that interest rates would not rise any
time soon.
    The release of details of President-elect Joe Biden's $1.9
trillion stimulus later that day failed to give the greenback
additional support, with the main points of the plan already
reported by the media.
    Bitcoin continued to recover after a nearly
$12,000 plunge from the record $42,000 reached last week,
briefly topping $40,000 overnight.
    The dollar index has rallied after reaching its
lowest level since March 2018 last week, as the prospect of more
stimulus weighed on U.S. government bonds, sending the benchmark
10-year Treasury yield above 1% for the first time since March.
    Although many analysts predict the greenback will resume the
decline that saw it slide almost 7% last year versus major peers
as the global economy recovers from the pandemic, there is
growing concern that the rise in yields will temper that
weakness.
    The dollar index was little changed at 90.26 after drifting
slightly lower overnight. It rebounded to as high as 90.73 at
the start of this week from as low as 89.206 on Jan. 6.
    Powell said in a live-streamed interview with a Princeton
University professor that the economy remains far from where the
Fed wants it to be, and that he sees no reason to alter its
highly accommodative stance "until the job is well and truly
done." 
    The central bank's asset-buying program has weighed on the
dollar as it increases supply of the currency, diminishing its
value.
    "Shorter term, Powell just put a lid on the U.S. dollar," 
said Westpac currency analyst Sean Callow.
    "The baseline case is still for a substantial acceleration
in the global economy, which historically has proven to be
positive for most currencies against the U.S. dollar, but I
think there is potential to at least have a debate over whether
the U.S. dollar will be quite as weak as people expect."
    The dollar was little changed at 103.76 yen after
slipping 0.1% overnight.
    The euro eased 0.1% to $1.21465, on track for a
three-day decline.
    The riskier Aussie dollar slid 0.1% to 77.650 U.S.
cents, tempering the previous session's 0.6% rise.

========================================================
    Currency bid prices at 11:33AM (233 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.2147        $1.2156     -0.07%         -0.58%      +1.2162     +1.2144
 Dollar/Yen                   103.7500       103.7750    +0.04%         +0.51%      +103.8400   +103.7050
 Euro/Yen                     126.03         126.16      -0.10%         -0.70%      +126.2000   +126.0200
 Dollar/Swiss                 0.8882         0.8881      +0.05%         +0.43%      +0.8885     +0.8880
 Sterling/Dollar              1.3678         1.3689      -0.09%         +0.10%      +1.3695     +1.3676
 Dollar/Canadian              1.2648         1.2644      +0.04%         -0.67%      +1.2652     +1.2639
 Aussie/Dollar                0.7766         0.7779      -0.13%         +0.99%      +0.7787     +0.7765
 NZ                           0.7204         0.7222      -0.24%         +0.33%      +0.7228     +0.7204
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 

    
 (Reporting by Kevin Buckland. Editing by Gerry Doyle)
  

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