TOKYO- The dollar started the week pinned near two-week lows on Monday as traders questioned whether the recovery from the pandemic in the United States would be as fast as expected.
Bitcoin traded below $49,000 after pushing to a record $49,714.66 over the weekend, following endorsements last week by Tesla and BNY Mellon.
The dollar index was at 90.427, close to last week’s low of 90.249 – a level not seen since Jan. 27.
The gauge hit a two-month top of 91.6 on Feb. 5 on hopes that a US rebound would outpace other major economies, but has since retreated amid disappointing employment data.
“The rebound in the dollar … was initiated by relative US economic outperformance, or expectations thereof,” said Shinichiro Kadota, senior currency strategist at Barclays Capital in Tokyo. “Now the market is looking for actual evidence that the US economy is outperforming.”
“The economic data needs to improve,” he said.
The euro was little changed at $1.21215 after climbing 0.6 percent last week.
The dollar rose 0.2 percent to 105.09 yen, recovering from some of the previous week’s 0.4 percent loss.