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Foreign exchange market: The dollar down again

04/05/2021
Categories: Index/Markets

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Although under pressure, the dollar went down on Monday against the euro and the main currencies, victim of a return of risk appetite. At the same time, the euro has been helped by good European figures.

The dollar is falling again as the squares of London, Tokyo and Hong Kong remained closed on Monday due to public holidays. However, the euro was up 0.37% to $1.2065 per euro, around 7pm GMT.
Joseph Manimbo of Western Union notes that the dollar has resumed its downward trend against major currencies after month-end flows on Friday pushed it higher. The greenback is down nearly 2.8% since the beginning of April against the dollar index, which compares the dollar to a basket of six other major currencies.

The British pound climbed 0.64% to $1.3911 per pound. The euro area gained support from the IHS Markit Manufacturing Activity Index (PMI), which showed its highest level since the survey began in 1997, climbing to 62.9 points in April, from 62.5 points in March.
Yields on ten-year Treasuries, which also dictate the attraction for the dollar, were down 1.60% (-1.30%) around 19:00 GMT. Bitcoin ended up 1.41% at $57,848.

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