The dollar’s rebound from a nearly three-year low faltered after Federal Reserve Chair Jerome Powell said on Thursday that interest rates would not rise any time soon.
The release of details of President-elect Joe Biden’s $1.9 trillion stimulus later that day failed to give the greenback additional support, with the main points of the plan already reported by the media.
Bitcoin continued to recover after a nearly $12,000 plunge from the record $42,000 reached last week, briefly topping $40,000 overnight.
The dollar index has rallied after reaching its lowest level since March 2018 last week, as the prospect of more stimulus weighed on U.S. government bonds, sending the benchmark 10-year Treasury yield above 1% for the first time since March.
The dollar index was little changed at 90.26 after drifting slightly lower overnight. It rebounded to as high as 90.73 at the start of this week from as low as 89.206 on Jan. 6.
The dollar was little changed at 103.76 yen after slipping 0.1% overnight.
The euro eased 0.1% to $1.21465, on track for a three-day decline.
The riskier Aussie dollar slid 0.1% to 77.650 U.S. cents, tempering the previous session’s 0.6% rise.