Oil prices hurt commodity prices, and bitcoin reaches a low level of 10 months

Oil prices hurt commodity prices, and bitcoin reaches a low level of 10 months

The dollar index was steady at 103.7 on Tuesday morning, having risen as high as 104.19 overnight, a fresh 20-year peak. It later lost some ground after Atlanta Fed President Raphael Bostic hosed down talk of a 75-basis points at the Fed’s next meeting. In recent weeks, markets have priced in a reasonable chance of such a massive hike.

Bostic’s moderate remarks helped the Japanese yen recover a little from a fresh 20-year low of 131.34 yen per dollar hit overnight. The Japanese currency, which is sensitive to moves in U.S. yields, strengthened a little more on Tuesday to 130.1. The beaten down euro was a fraction higher at $1.0561 and sterling was little changed at $1.2329.

There was also excitement in crypto markets, where bitcoin fell below $30,000 for the first time since July 2021. The world’s largest cryptocurrency is trading largely in line with other so called risk assets, such as tech stocks. It was last a little firmer around $30,600.

Story Highlights

  • Global share markets took a battering on Monday with the Nasdaq dropping more than 4% in a sell-off led by mega-cap growth stocks. Meanwhile, oil prices fell around 6%, extending declines on Tuesday as coronavirus lockdowns in China, the top oil importer, fed worries about demand. Lower oil prices also hurt the Canadian dollar, which touched C$1.3037 per dollar, its weakest since November 2020 and the Norwegian crown touched 9.7184 per dollar, its lowest since June 2020.

  • U.S. Treasury yields have climbed on expectations the Fed will aggressively tamp down inflation, which has caused the dollar to rise for five straight weeks. The benchmark 10-year yield edged back under 3% on Tuesday to 2.9846%.