By Karen Brettell
NEW YORK, Apr 5 (Reuters) – The dollar fell to a week-long lows against a basket of currencies on Monday, as stocks hit record highs on Wall Street and investors waited for the next catalyst to steer. to possible future movements.
* The dollar has rebounded this year in line with rising Treasury yields as investors are betting on faster U.S. economic growth and higher inflation as the economy reopens after related lockdowns with COVID-19.
* The greenback has generally risen at the same time as stocks. Investors are now on the lookout for whether that relationship holds, as it could indicate a shift in the way the currency responds to improved risk appetite.
* “The hardest thing for markets right now is figuring out how sensitive the dollar is to good economic news from the United States,” said Erik Nelson, macro strategist at Wells Fargo in New York.
* “This is a great question, because if we are entering a phase where the dollar is no longer a safe haven and becomes a ‘risk’ currency, that is a big regime change,” he added.
* The dollar fell on Monday as shares rose, trading down 0.20% against a basket of currencies at 92.77 units. The dollar index has fallen from 93.44 units on Wednesday, a high since November 5.
* The greenback had risen on Friday after data showed the US economy created the most jobs in seven months in March.
* The euro was up 0.29% at $ 1.1786, while the British pound was up 0.42% at $ 1.3886.
(Edited in Spanish by Javier Leira)