Dollar down as bitcoin soars

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    TOKYO- The dollar languished near its lowest in a week on Tuesday as investors began entertaining doubts about the scale of a recent rally driven by expectations of a faster pandemic recovery in the United States than elsewhere.

    The spotlight remained on bitcoin as it reached a record above $47,000, building on a nearly 20 percent surge overnight that was the biggest since 2017, after Tesla Inc announced a $1.5 billion investment in the digital asset.

    The dollar index against a basket of major currencies has vacillated around 91 since disappointing US jobs data on Friday knocked the wind out of a two-week run that had lifted it to a more than two-month high of 91.6. It last traded at 90.935.

    Investors had pushed up the greenback thanks to a faster US vaccine rollout relative to most other countries, and as Democrats moved to fast-track President Joe Biden’s $1.9 trillion COVID-19 relief package.

    Many analysts, though, see that massive fiscal spending coupled with continued ultra-easy Federal Reserve monetary policy dragging down the dollar in the longer term.