Meanwhile, growth assets such as bitcoin enjoyed a bounce. The world's largest cryptocurrency hit a nine-month high on Monday and last rose 4.62% to $28,065.00. "I think whenever people feel like you don't have to do a flight to quality, the dollar is going to take a hit," said Thomas Anderson, managing director at moneycorp North America.
Also weighing on the dollar are concerns about regional U.S. banks, despite several large banks depositing $30 billion last week into First Republic Bank , the U.S. lender drawing the most unease from investors. First Republic shares tumbled as much as 50% on Monday and were last down about 39%. "In particular, there are risks developing, or at least some degree of uncertainty, with the regional U.S. banks that I think are weighing on U.S. assets at this point as well," said Bipan Rai, North America head of FX strategy at CIBC Capital Markets in Toronto. Under the UBS-Credit Suisse deal, holders of $17 billion of Credit Suisse Additional Tier-1 (AT1) bonds will be wiped out. That angered some of the holders of the debt, who thought they would be better protected than shareholders, and unnerved investors in other banks' AT1 bonds. The euro was last up 0.54% against the dollar at $1.0724, while the British pound was last trading at $1.2281, up 0.87% on the day.
The dollar rose 0.24% against the Swiss franc at
0.928.
ALL EYES ON THE FED
The Federal Reserve's latest decision on interest rate hikes is due on Wednesday and adds an additional layer of uncertainty for investors.
Rates currently stand at 4.5% to 4.75%. Traders now expect a peak in rates in May at around 4.8%, followed by a steady series of cuts into the end of the year, but will be closely watching the forecast for future rate moves that the Fed is expected to unveil on Wednesday.
"The path of least regret, at least from our view, is to keep (forecasts) consistent with where they were in December. Given that the risks have now risen to the domestic financial sector, I think that's probably the prudent course of action for them," Rai said.
The Japanese yen - long seen as a safe haven at times of stress - strengthened 0.28% versus the greenback at 131.47 per dollar.
Australia's dollar rose 0.33% versus the greenback at $0.672, while the Canadian dollar rose 0.52% versus the greenback at 1.37 per dollar. ======================================================== Currency bid prices at 2:50PM (1850 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change
Session
Dollar index 103.2700 103.8000 -0.50% -0.213% +103.9600 +103.2700
Euro/Dollar $1.0724 $1.0667 +0.54% +0.09% +$1.0731 +$1.0632
Dollar/Yen 131.4600 131.8500 -0.29% +0.28% +132.6400 +130.5500
Euro/Yen 141.00 140.62 +0.27% +0.50% +141.7400 +138.8400
Dollar/Swiss 0.9282 0.9259 +0.23% +0.37% +0.9312 +0.9222
Sterling/Dollar $1.2283 $1.2181 +0.83% +1.56% +$1.2284 +$1.2169
Dollar/Canadian 1.3658 1.3736 -0.55% +0.82% +1.3746 +1.3652
Aussie/Dollar $0.6718 $0.6699 +0.28% -1.45% +$0.6740 +$0.6666
Euro/Swiss 0.9953 0.9877 +0.77% +0.59% +0.9955 +0.9859
Euro/Sterling 0.8729 0.8755 -0.30% -1.30% +0.8769 +0.8729
NZ $0.6250 $0.6267 -0.28% -1.57% +$0.6306 +$0.6230
Dollar/Dollar
Dollar/Norway 10.6360 10.7150 -0.60% +8.53% +10.7850 +10.6360
Euro/Norway 11.4089 11.3970 +0.10% +8.72% +11.4779 +11.3834
Dollar/Sweden 10.3621 10.5006 -0.74% -0.44% +10.5411 +10.3630
Euro/Sweden 11.1140 11.1971 -0.74% -0.32% +11.2295 +11.1140
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Fed currency swaps have seen little recent use ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Hannah Lang in Washington; Editing by Ed Osmond,
Christina Fincher, Andrea Ricci and Alison Williams)
