Dollar stuck near 3-month lows, bitcoin struggles

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Dollar stuck near 3-month lows, bitcoin struggles

The dollar was pinned near three-month lows from a basket of major currencies on Monday, as stakes on a strong global economic recovery continued

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The dollar was pinned near three-month lows from a basket of major currencies on Monday, as stakes on a strong global economic recovery continued to support monies seen as riskier.

The dollar index hovered around the 90 mark, down 0.2percent on the day and near a three-month low of 89.646 hit Friday.

The greenback, seen as a safe-haven trade, has steadily retreated over the past two months since optimism has built about the economic outlook.

European stocks opened on Monday, closing in on record highs, although many markets, such as Germany’s, were closed for a vacation.

Money analysts were already looking ahead to key U.S. personal consumption and inflation amounts due Friday for almost any warning signs that U.S. inflation might be gathering pace and putting pressure on the Federal Reserve to taper policy.

Traders will also be watching for progress on a new stimulus package in the United States, after the White House pared down its infrastructure charge to $1.7 trillion on Friday but failed to gain Senate Republican funding.

Among the currencies gaining on the dollar was that the euro, up a quarter of a percentage above $1.22. The single currency has gained approximately 4% over the greenback over the previous 3 months.

‘Though the U.S. led in economic reopenings in the first quarter, Europe is catching up and contains additional room for improvement, encouraging the euro,”’ explained Jun Arachi, currency strategist in Rakuten Securities.

In cryptocurrencies, bitcoin rebounded by 6% to just shy of $37,000, but is still down after crashing in recent days, falling as much as 17% to $31,107 on Sunday.

Bitcoin halved in value just weeks following April’s record peak of $64,895, undermining the case because of its own mainstream acceptance.

Cryptocurrencies have tumbled after Elon Musk’s Tesla said it will quit accepting bitcoin for car purchases and after China further clamped down .