The super dollar fell on Monday as investors reacted nervously to rival UBS’s cut-price acquisition of Credit Suisse.
UBS agreed to buy Credit Suisse on Sunday for 3 billion Swiss francs ($3.23 billion) and take up to $5.4 billion in losses, in a lightning merger engineered by Swiss authorities.
The dollar index, which measures the currency’s performance against a basket of six currencies, it was down 0.501% at 103,270 units, after falling 0.73% last week.
At the same time, growth assets like bitcoin enjoyed a rebound. The world’s largest cryptocurrency hit a nine-month high on Monday and was up near the close of 4.62% to $28,065.
Another factor weighing on the dollar is concern about US regional banks. Despite the fact that several big banks last week deposited $30 billion in First Republic Bank, the most concerned US lender among investors. First Republic shares plunged as much as 50% on Monday and were down 39%.
The euro was up 0.54% at $1.0724, while sterling was up 0.87% at $1.2281. The dollar was down 0.24% against its Swiss counterpart at 0.928 Swiss francs.
As part of regulators’ efforts to shore up confidence in the global banking system, central banks moved on Sunday to bolster cash flow around the world.
The yen, long considered a safe currency in times of stress, was up 0.28% at 131.47 per dollar.
Source: Ambito
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