TOKYO- The US dollar held firm on Monday after bouncing off a one-week low last week, supported by a spike in benchmark Treasury yields to more-than-one-year highs as inflation fears continued to smoulder.
Bitcoin retreated to below $60,000 amid a Reuters report that India will push ahead on a proposal to ban cryptocurrencies. It had surged to a record $61,781.83 over the weekend.
The greenback traded near its highest since June against the Japanese yen, which tends to weaken when Treasury yields rise.
Market participants have grown wary in recent weeks that massive fiscal stimulus and pent-up consumer demand could lead to a jump in inflation as expanding vaccination campaigns bring an end to lockdowns.
US producer prices had their largest annual gain in nearly 2-1/2 years, data showed on Friday, while the country’s economy is set to get a massive shot in the arm from President Joe Biden’s $1.9 trillion stimulus package.
The outlook for the already brisk pace of US vaccinations has also been boosted by Biden’s order for every state to make all adults eligible for vaccination by May 1.
The dollar index, which tracks the US currency against six major peers, held around 91.645 early in Monday’s Asia session after climbing from near a one-week low of 91.364 at the end of last week.
Benchmark 10-year Treasury yields were at 1.6282 percent on Monday, close to Friday’s top of 1.6420 percent.