"I think whenever people feel like you don't have to do a flight to quality, the dollar is going to take a hit," he added. Under the 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 immediate concern now is that AT1 bonds were completely written down, which is contrary to convention because equity holders are supposed to be higher risk than bondholders," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "That's disconcerting to a lot of people." The euro was last up 0.54% against the dollar at $1.0724, while the British pound was last trading at $1.2259, up 0.69% on the day.
The dollar fell 0.1% against the Swiss franc to
0.925.
As part of regulators' efforts to shore up confidence in the global banking system, central banks moved on Sunday to bolster the flow of cash around the world. The U.S. Federal Reserve offered daily currency swaps to ensure banks in Canada, Britain, Japan, Switzerland and the euro zone would have the dollars needed to operate, echoing actions taken during the COVID crisis of 2020.
U.S. BOND RALLY WEIGHS ON DOLLAR Yields on 10-year U.S. Treasury notes were at 3.468% on Monday as investors moved into government bonds, which are seen as safe assets, and bet the Federal Reserve would now struggle to raise interest rates much further. The Fed's latest rate decision is due on Wednesday and adds an additional layer of uncertainty.
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. The Japanese yen - long seen as a safe haven at times of stress - was last up 0.17% versus the greenback at 131.59 per dollar.
Australia's dollar rose 0.28% versus the greenback at $0.671. In crytocurrencies, bitcoin last rose 4.41% to $28,008.00 after earlier hitting a nine-month high.
======================================================== Currency bid prices at 10:00AM (1400 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change
Session
Dollar index 103.3000 103.8000 -0.47% -0.184% +103.9600 +103.2700
Euro/Dollar $1.0725 $1.0667 +0.55% +0.09% +$1.0731 +$1.0632
Dollar/Yen 131.5850 131.8500 -0.21% +0.35% +132.6400 +130.5500
Euro/Yen 141.12 140.62 +0.36% +0.58% +141.7400 +138.8400
Dollar/Swiss 0.9245 0.9259 -0.15% -0.02% +0.9312 +0.9222
Sterling/Dollar $1.2259 $1.2181 +0.65% +1.38% +$1.2262 +$1.2169
Dollar/Canadian 1.3655 1.3736 -0.56% +0.81% +1.3746 +1.3659
Aussie/Dollar $0.6723 $0.6699 +0.35% -1.38% +$0.6740 +$0.6666
Euro/Swiss 0.9914 0.9877 +0.37% +0.19% +0.9933 +0.9859
Euro/Sterling 0.8748 0.8755 -0.08% -1.09% +0.8769 +0.8729
NZ $0.6266 $0.6267 -0.02% -1.32% +$0.6306 +$0.6230
Dollar/Dollar
Dollar/Norway 10.6510 10.7150 -0.58% +8.55% +10.7850 +10.6470
Euro/Norway 11.4229 11.3970 +0.23% +8.86% +11.4779 +11.3834
Dollar/Sweden 10.3967 10.5006 -0.41% -0.11% +10.5411 +10.3995
Euro/Sweden 11.1512 11.1971 -0.41% +0.01% +11.2295 +11.1450
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Fed currency swaps have seen little recent use ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Hannah Lang in Washington and Harry Robertson in
London; Editing by Ed Osmond, Christina Fincher and Andrea
Ricci)
