He dollar fell this Tuesday, March 28 after the reduction of fear of a banking crisis that slowed down the demand for the so-called safe-haven assets.
Investors took solace in First Citizens BancShares’ agreement to buy all of Silicon Valley Bank’s deposits and loansand the fact that no more cracks have emerged in global banking in recent sessions.
The dollar index, which measures the US currency against six rivals, was down 0.3% at 102.43, inching closer to a nearly seven-week low of 101.91 hit on Thursday.
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The Australian dollar, seen as a liquid indicator of risk appetite, rose 0.8% to $0.67025, boosted by better-than-expected retail sales data.
“There is definitely a positive bias to trading today”said Michael Brown, a strategist at TraderX, in London. * The euro rose to a five-day high against the dollar as yields on euro zone government bonds rose on Tuesday.
The dollar found little support in data on Tuesday that showed that the US goods trade deficit widened modestly in February due to falling exportswhich could make trade a drag on economic growth in the first quarter.
The yen rallied despite also traditionally being a safe haven, with analysts pointing to a rebound in flows before the end of Japan’s fiscal year on Friday.
The dollar fell as low as 130.415 yen, last falling 0.60% to 130.795 as the Japanese currency rose. That undid most of the dollar’s 0.64% jump against the yen in the previous session, which followed a big rise in US government bond yields.
Analysts said Japanese companies were likely to sell foreign bonds to bolster their balance sheets.
Sterling rose 0.4% on the day, hovering around a two-month high as the Bank of England said Britain was experiencing no stress related to the demise of Silicon Valley Bank and Credit Suisse.
Source: Ambito
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