TOKYO- The dollar was pinned near a one-month low to major peers on Monday, with Treasury yields hovering near the lowest in five weeks, after the US Federal Reserve reiterated its view that any spike in inflation was likely to be temporary.
The safe-haven greenback was also held down by improved risk sentiment amid a rally in global stocks to record highs.
Bitcoin nursed losses from Sunday, when it plunged by as much as 14 percent to $51,541, which a report attributed to news of a power outage in China. It last traded around $57,020.
The dollar index, which tracks the currency against six rivals, was at 91.684, not far from the low of 91.484 marked last week, a level not seen since March 18.
The greenback bought 108.74 yen, near the lowest since March 24.
The euro changed hands at $1.19565, near the highest since March 4.
“The fixed income market will dominate my world this week,” with the risk currently skewed to further yield declines, pressuring the dollar, Chris Weston, head of research at Pepperstone Markets Ltd, a foreign exchange broker based in Melbourne, wrote in a client note.
Wall Street’s gains amid low volatility “should keep USD rallies contained and attract further USD sellers,” he wrote.
Benchmark 10-year yields could fall to as low as 1.47 percent, from around 1.56 percent currently, according to Weston.
Key technical points are 91.30, the March 18 low, for the dollar index, and $1.2000 for euro, which could trigger a run to $1.22, he said.
