[Source: Reuters Business]
The dollar was firm, while the yen hovered near its seven-week peak as investors assessed moves made by authorities and regulators to rein in worries over the global banking system.
The dollar index , which measures the currency against six rivals, was up 0.078% at 103.060, having gained 0.5% on Friday amid banking jitters, with shares of Deutsche Bank (DBKGn.DE) sliding nearly 9%.
Global banking stocks have been battered through the month in the wake of the sudden collapse of two U.S. lenders and the rescue of embattled Swiss bank Credit Suisse (CSGN.S) last week, with authorities stepping in to ease investors nerves.
On Friday, the U.S. Financial Stability Oversight Council said the U.S. banking system was “sound and resilient” despite stress on some institutions. Investors, though, remain wary.
Risk-wary investors sent the yen to a seven-week high of 129.65 per dollar on Friday. It was last at 130.70 on Monday.
The Fed on Wednesday raised interest rates by 25 basis points, as expected, but took a cautious stance on the outlook because of banking sector turmoil even as Fed Chair Jerome Powell kept the door open on further rate rises if necessary.
Markets are pricing in an 87% chance of the Fed’s standing pat on interest rates in its next meeting in May and anticipate a rate cut as early as July, according to CME FedWatch tool.’
Minneapolis Fed president Neel Kashkari said on Sunday the recent stress in the banking sector and the possibility of a follow-on credit crunch has brought the U.S. closer to recession.
Meanwhile, the euro was up 0.03% to $1.0762, after falling 0.6% on Friday. Sterling was at $1.2236, up 0.06% on the day, having slid 0.5% on Friday.
The Australian dollar rose 0.03% versus the greenback at $0.665. The kiwi was flat at $0.620.
In cryptocurrencies, bitcoin last rose 0.92% to $27,883.00. Ethereum , last rose 1.05% to $1,769.40.