Commodity currencies hit by tumbling oil prices, bitcoin near 10-month low

Commodity currencies hit by tumbling oil prices, bitcoin near 10-month low

A person walks previous numerous foreign money indicators, together with the greenback (high R), Australian greenback (high L), pound sterling (centre L) and Euro (backside L), exterior a brokerage in Tokyo October 28, 2014. REUTERS/Yuya Shino

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HONG KONG, May 10 (Reuters) – Falling commodity costs dragged the Australian and Canadian currencies decrease on Tuesday, though the greenback was regular in opposition to most different majors whereas bitcoin continued to tumble.

The Aussie greenback dropped as low as $0.6920, its weakest since July 2020, having fallen 1.7% in a single day, which analysts at CBA attributed to declines in world asset costs.

“The backdrop of heightened monetary market volatility suggests AUD can probably fall additional in opposition to the USD and different main crosses within the near time period,” they added.

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Global share markets took a battering on Monday with the Nasdaq dropping greater than 4% in a sell-off led by mega-cap progress shares. Meanwhile, oil costs fell round 6%, extending declines on Tuesday as coronavirus lockdowns in China, the highest oil importer, fed worries about demand.

Lower oil costs additionally harm the Canadian greenback , which touched C$1.3037 per greenback, its weakest since November 2020 and the Norwegian crown touched 9.7184 per greenback, its lowest since June 2020.

The greenback index was regular at 103.7 on Tuesday morning, having risen as excessive as 104.19 in a single day, a contemporary 20-year peak. It later misplaced some floor after Atlanta Fed President Raphael Bostic hosed down speak of a 75-basis factors on the Fed’s subsequent assembly. learn extra

In latest weeks, markets have priced in an inexpensive likelihood of such an enormous hike.

U.S. Treasury yields have climbed on expectations the Fed will aggressively tamp down inflation, which has precipitated the greenback to rise for 5 straight weeks.

The benchmark 10-year yield edged again below 3% on Tuesday to 2.9846%.

Bostic’s reasonable remarks helped the Japanese yen recuperate just a little from a contemporary 20-year low of 131.34 yen per greenback hit in a single day. The Japanese foreign money, which is delicate to strikes in U.S. yields, strengthened just a little extra on Tuesday to 130.1.

The crushed down euro was a fraction greater at $1.0561 and sterling was little modified at $1.2329.

There was additionally pleasure in crypto markets, the place bitcoin fell under $30,000 for the primary time since July 2021.

The world’s largest cryptocurrency is buying and selling largely according to different so known as threat belongings, equivalent to tech shares. It was final just a little firmer round $30,600.

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Reporting by Alun John; Editing by Sam Holmes

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/enterprise/commodity-currencies-hit-by-tumbling-oil-prices-bitcoin-near-10-month-low-2022-05-10/

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