FOREX dollar headed for biggest weekly loss since mid-January; crypto fall

(Adds New Comment, US Data, NEW YORK Dateline, Bullets, Updates Prices) * US Services Data Shows Flat Growth in February * Bitcoin, Ether Drops in Silvergate Fallout * Dollar May Resume Uptrend Next Week on US Jobs Data By Samuel Indyk and Gertrude Chavez-Dreyfuss LONDON/NEW YORK, March 3 (Reuters) – The U.S. dollar fell from a 2-1/2-month high against the yen on Friday and was on course for its biggest weekly loss against major competitors since mid-January, as traders tried to gauge the path for Federal Reserve policy. The yen, which is particularly sensitive to long-term US-Japanese interest rate differentials, appeared to end its six-week losing streak against the dollar as it was boosted by US 10-year yields retreating from a near four-month high. close to 4.1%. Cryptocurrencies, on the other hand, took a beating as the crisis engulfing Silvergate worsened, with industry heavyweights including Coinbase Global and Galaxy Digital dropping the lender as their banking partner. The dollar index, which measures the dollar against six major currencies, fell 0.2% to 104.78, from as high as 105.36 at the start of the week, which was the strongest level since January 6. So far this week, the index is down 0.4%. The dollar pared losses shortly after data showed the U.S. services sector grew at a steady pace in February, with new orders and employment rising to more than one-year highs. The Institute for Supply Management (ISM) said on Friday that the non-manufacturing PMI edged down to 55.1 from a reading of 55.2 in January. Taking some of the steam out of the dollar and the breathless advance in US interest rates were comments from Fed policymakers, including Atlanta Fed President Raphael Bostic, who said “slow and steady is going to be the way to go,” despite new employment contributed to the latest upswing with strong data. “It feels like the corrective bounce in the dollar is on its last leg: markets took yesterday’s … comments from Waller and Bostic in stride, choosing to focus on the possibility of a more data-driven break instead,” said Karl Schamotta, market strategist , at Corpay in Toronto. “This suggests traders believe yields have been pushed too far, too fast, and could herald a peak in implied terminal rates,” he added. Analysts polled by Reuters said recent dollar strength was likely to be temporary and the currency would weaken over the course of the year amid an improving global economy and expectations that the Fed will stop raising interest rates well before the European Central Bank. That said, Schamotta believes a reversal in the dollar seems unlikely. “Next week’s job opening and non-farm payrolls reports could generate a boost in yields and the dollar. Traders are likely to move cautiously, especially in currencies exposed to more dovish local central bank messages – namely the Australian, Canadian dollar and yen,” he said. The Bank of Japan (BOJ), meanwhile, is expected to start dismantling extraordinary stimulus measures some time after Governor Haruhiko Kuroda retires next month. Tokyo inflation data for February exceeded the BOJ’s target for a ninth month, but the core measure eased from a 42-year high. The dollar fell 0.4% to 136.26 yen, after climbing to 137.10 on Thursday, its highest since Dec. 20. For the week, the dollar is down 0.4% against the yen, but any gains would preserve its winning streak since mid-January. The euro was little changed at $1.0605, climbing from a near two-month low of $1.0533 at the start of the week. Sterling added 0.2% to $1.1987, on course for a 0.2% weekly gain, after Britain struck a post-Brexit trade deal with the EU in Northern Ireland, while a survey showed Britain’s services sector grew at the fastest pace in eight months in February. Bitcoin fell 4.6% to $22,387, earlier touching a 2-1/2-week low of $22,000. Ether fell 4.6% to $1,572 after touching $1,543.60, its lowest since mid-February. ================================================= ====== Bid ​​prices in currency at 10:45 (1545 GMT) Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid Previous Change Increased Dollar Index 104.8500 104.9600 -0.10% 1.314% +101.04.04.09 +101.04.09. $ 1.0598 +0.06% -1.03% +$ 1.0630 +$ 1.0589 dollar/yen 136.2400 136.7800 -0.39% +3.92% +136.7650 +135.81% SWISS/yen 144.47404.30303030303030303030303030303 1.56% +0.9420 +0.9369 Sterling/dollar $ 1.1982 $ 1.1948 +0.31% -0.90% +$ 1.2018 +$ 1.1945 dollar/Canadian 1.3623 1.333030% 0.30.20666666666 -46666 – dukerie +10.6666360 -$10.666603 Euro/Switzerland 10.4320 10.4360 -0.02% +6.32% +10.4610 +10.3990 Euro/Norway 11.0646 11.0500 +0.13% +5.44% +11.0900 +11.0416 5 Dollar/Sweden 0.500 0.5073 +0.03% +0.89% +10.5271 +10.4673 Euro/Sweden 11.1357 11.1322 +0.03% -0.12% + 11.1533 +11.1225 (Reporting by Samuel Indfusk in London and Gertrude York in London; Additional reporting by Kevin Buckland in Tokyo; Editing by Christopher Cushing, Kim Coghill, Louise Heavens and Christina Fincher)