The weakening in the US dollar and bond yields, the faster vaccine rollouts, the prospects for global economic recovery, and the rally in commodities prices have been driving the currency movements across the board in April.
The US dollar dropped to its lowest level in nearly 2 months as bond yields retreated from their recent highs touched last month, despite the faster-than-expected economic recovery in the United States.
The DXY-dollar index has extended declines below the 91 mark, following the commitment from the Federal Reserve to keep its monetary policy “accommodative” until the US economy recovers from the recession.
Euro trades above 1.20 for the first time since early March, as investors grow more optimistic about the pace of vaccine rollout since the European Union has secured an additional 100 million doses of vaccine by Pfizer.
The Pound Sterling is getting stronger across the board, as the UK economy is expected to gain momentum from the successful vaccine rollout, the eased lockdown, and the reopening of pubs and restaurants.
Finding support from the rising crude oil and industrial metal prices, the commodity-linked currencies such as the Australian, New Zealand & Canadian dollars, Norwegian crone, and Mexico peso have climbed nearly 3-year highs.
Russia’s rouble slumped to monthly lows after US imposed new sanctions targeting the country’s sovereign debt, while the Turkish lira trades near yearly lows after President Erdogan replaced his hawkish central banker.
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