Falling commodity prices pulled the Australian and Canadian currencies lower on Tuesday, although the dollar was steady against most other major currencies and bitcoin continued to fall.

The Australian dollar fell to $ 0.6920, the weakest since July 2020, falling 1.7% overnight, which CBA analysts attribute to declining global asset prices.

“The background of increased financial market volatility suggests that AUD could potentially fall further against the dollar and other major crosses in the near future,” they added.

Global stock markets were hit on Monday when the Nasdaq fell more than 4% as a result of a sell-off caused by rising stocks with megacapitalization.

Meanwhile, oil prices fell about 6%, extending the decline on Tuesday as a blockade of the coronavirus in China, the largest importer of oil, caused concern about demand.

The decline in oil prices also affected the Canadian dollar, which reached 1.3037 Canadian dollars per dollar, the weakest since November 2020, and the Norwegian krone reached 9.7184 dollars per dollar, the lowest since June 2020. .

The dollar index on Tuesday morning was stable at 103.7, rising overnight to 104.19, a new peak in 20 years.

He later lost some positions after Atlanta Fed President Rafael Bostik uttered talks about 75 base points at the next Fed meeting.

In recent weeks, markets have assessed reasonable chances of such a massive increase.

Yields on U.S. Treasuries have risen amid expectations that the Fed will aggressively cut inflation, leading to a dollar rise for five weeks in a row.

On Tuesday, the benchmark 10-year yield fell below 3% to 2.9846%.

Bostik’s moderate remarks helped the Japanese yen recover slightly from the fresh 20-year low of 131.34 yen per dollar reached overnight.

The Japanese currency, sensitive to US yields, strengthened slightly to 130.1 on Tuesday.

The beaten euro was a share higher – 1.0561 dollars, and the pound sterling has changed little – 1.2329 dollars.

There was also a stir in crypto markets, where bitcoin fell below $ 30,000 for the first time since July 2021.

The world’s largest cryptocurrency is traded mostly along with other so-called risky assets such as technology stocks.

The latter was a little stronger at about $ 30,600.

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