Dollar opens 2021 in the cellar with a hangover

The dollar opened 2021 by sliding on Monday as investors went on a sell-off in Asian trade, betting that the pandemic recovery will boost other currencies.

The euro, which fell on New Year’s Eve profit-taking, gained 0.3% to $1.2252. The pound firmed at $1.3698, levels not seen since early 2018. The yuan surged 0.9% to a 30-month high of $6.4647. 

The safe-haven yen climbed 0.3% to 102.94 against the dollar. The Aussie and the kiwi each rose 0.3% to stand just below multi-year peaks. 

The dollar index was down 0.08% to 89.688, not far above a more than 2 ½-year low of 89.515 hit last week.

A weak dollar lifted commodity prices and boosted Bitcoin, as well as some Asian currencies to new highs.