BUSINESS US dollar edges down after strong rally

BUSINESS

US dollar edges down after strong rally

Xinhua

07:18, April 01, 2021

NEW YORK, March 31 (Xinhua) -- The U.S. dollar moved modestly lower in late trading on Wednesday, following a noticeable gain in the prior session buoyed by an upswing in bond yields.

The dollar index, which measures the greenback against six major peers, fell 0.09 percent at 93.2202.

In late New York trading, the euro rose to 1.1726 U.S. dollars from 1.1716 dollars in the previous session, and the British pound rose to 1.3779 dollars from 1.3723 U.S. dollars in the previous session. The Australian dollar was up to 0.7601 U.S. dollar from 0.7589 dollar.

The U.S. dollar bought 110.73 Japanese yen, higher than 110.34 Japanese yen of the previous session. The U.S. dollar rose to 0.9455 Swiss franc from 0.9421 Swiss franc, and it decreased to 1.2569 Canadian dollars from 1.2633 Canadian dollars.

The above moves followed an upbeat session for the greenback, which saw the dollar index increase 0.39 percent on Tuesday.

Yet, analysts cautioned that the U.S. dollar's strength is unlikely to last.

"While it will likely take some time before U.S. dollar weakness resurfaces, we believe the greenback should peak eventually," UBS Global Wealth Management's Chief Investment Officer Mark Haefele said in a note on Wednesday.

"We continue to like the euro, sterling and the Swiss franc, and we see medium- to long-term upside potential in a diversified set of G10 currencies against the U.S. dollar. In addition, we like the Singapore dollar and Chinese yuan for their cyclical exposure," he said.

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