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BUZZ-COMMENT-Crypto stress adds to King Dollar’s power

May 12, 2022By Reuters

A stampede out of stablecoins amid risk aversion is adding to the dollar’s allure and helping reinvigorate the yen and Swiss franc – two fellow safe-haven currencies that have been under pressure of late.

Bitcoin dropped to $25,401.05 on Thursday, its lowest level since 2020, with Ether falling nearly 15%, following this week’s meltdown in fellow cryptocurrency TerraUSD. nL2N2X4098

The crypto woes have helped inflate the dollar to its highest level against the euro since 2017, a two-year peak against the pound and a 23-month high against the Australian dollar, with 1.0422 marking Thursday’s EBS low for EUR/USD, and 1.2165 and 0.6861 the respective lows for GBP/USD and AUD/USD.

Similarly, the yen hit a two-week high against the dollar, with 128.41 marking the EBS low for USD/JPY, while the franc climbed to an intra-week high against the euro, with EUR/CHF sliding through 1.04 (1.0515 was Tuesday’s three-month EBS high).

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(Robert Howard is a Reuters market analyst. The views expressed are his own)


This article originally appeared on reuters.com

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