FOREX-Dollar rises from lows; oil drop hits crude-linked currencies

  • Reuters
  • Forex News
FOREX-Dollar rises from lows; oil drop hits crude-linked currencies
Credit: © Reuters.

(Revises throughout, updates prices, adds action in Canadian dollar, emerging markets)

* Dollar rises after dipping to lowest since March 3

* Euro gives up some gains from vaccination news

* British pound retreats from testing $1.40

* Oil drop on India coronavirus surge hits Mexico's peso

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By David Henry

NEW YORK, April 20 (Reuters) - The dollar rose on Tuesday as interest rates in the United States moved in a tight range and a drop in oil prices hit crude-linked currencies.

After touching its lowest level in nearly seven weeks, the dollar index against major currencies =USD rose 0.2% to 91.204 in the afternoon in New York.

The euro EUR=EBS was flat at $1.2033 after rising nearly 0.4% on the outlook for increasing vaccinations. The British pound GBP=D3 fell 0.4% to $1.3937 after it backed off from touching $1.40 and gaining 1% on Monday.

The dollar has fallen in April as U.S. bond yields retreated from the 14-month highs of 1.776% reached last month. The currency and yield declines have come as evidence mounted that the Federal Reserve would be slower about tightening monetary policy than it had appeared to the market, analysts said.

The 10-year Treasury yield US10YT=RR slipped to 1.57% after trading in a narrow range around 1.60%. currency and interest rate markets could be relatively calm for another few weeks as the Fed and the European Central Bank each take their time about adjusting their rate policies, said Mazen Issa, senior currency strategist at TD Securities.

"There really isn't a strong catalyst in either direction this month to really break us out of ranges," Issa said.

Some encouragement for the euro came from the announcement that the European Union has secured an additional 100 million doses of the COVID-19 vaccine produced by BioNTech 22UAy.DE and Pfizer (NYSE: PFE ) PFE.N . vaccination news suggests that the pace of Europe's recovery from the pandemic will begin to catch up with the United States and its story of faster growth, Issa said.

"The FX market is moving away from this idea of full-on U.S. exceptionalism to being in a little bit more in limbo now," he said.

Against the Japanese yen, the dollar edged up to 108.09 after having broken below 108 for the first time since March 5.

Oil-linked currencies took a hit when crude prices fell 1% on fears that surging coronavirus infections in India will bring restrictions and reduce demand for oil. Canadian dollar, CAD=D3 which had been steady ahead of a Wednesday meeting of the Bank of Canada, then weakened the most in nearly two months to 1.2620 against the dollar, or 79.24 U.S. cents. The Norwegian crown NOK=D3 retreated from its strongest levels against the dollar since 2018.

Mexico's peso MXN= also weakened with oil after hovering around three-month highs on the strength of carry trades in high-yield emerging market currencies bolstered by recent low volatility. BTC=BTSP rose 1% to $56,211 on Tuesday afternoon.

========================================================

Currency bid prices at 3:17PM (1917 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

91.2040

91.0490

+0.18%

1.359%

+91.2820

+90.8560 Euro/Dollar

EUR=EBS

$1.2033

$1.2036

-0.02%

-1.52%

+$1.2080

+$1.2023 Dollar/Yen

JPY=EBS

108.0900

108.1500

-0.06%

+4.61%

+108.5450 +107.9750 Euro/Yen

EURJPY=

130.07

130.14

-0.05%

+2.48%

+130.9600 +130.0000 Dollar/Swiss

CHF=EBS

0.9161

0.9153

+0.09%

+3.55%

+0.9169

+0.9136 Sterling/Dollar GBP=D3

$1.3937

$1.3989

-0.37%

+2.02%

+$1.4008

+$1.3926 Dollar/Canadian CAD=D3

1.2609

1.2531

+0.64%

-0.97%

+1.2623

+1.2479 Aussie/Dollar

AUD=D3

$0.7721

$0.7755

-0.42%

+0.38%

+$0.7815

+$0.7709 Euro/Swiss

EURCHF=

1.1023

1.1016

+0.06%

+2.00%

+1.1047

+1.1010 Euro/Sterling

EURGBP=

0.8633

0.8605

+0.33%

-3.40%

+0.8643

+0.8603 NZ

NZD=D3

$0.7171

$0.7180

-0.18%

-0.19%

+$0.7229

+$0.7165 Dollar/Dollar

Dollar/Norway

NOK=D3

8.3550

8.2965

+0.74%

-2.67%

+8.3650

+8.2520 Euro/Norway

EURNOK=

10.0550

9.9866

+0.68%

-3.94%

+10.0615

+9.9532 Dollar/Sweden

SEK=

8.4358

8.3980

+0.41%

+2.92%

+8.4437

+8.3615 Euro/Sweden

EURSEK=

10.1515

10.1099

+0.41%

+0.75%

+10.1583

+10.0990

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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