London, Jan. 11 (BNA): The dollar drifted lower on Thursday as traders waited for U.S. inflation data to confirm whether bets on as many as five Fed interest rate cuts this year were justified, while weak Japanese wages data sent the yen to a six-week low against the euro.
Bitcoin traded at $46,400, just shy of a two-year high, with investors welcoming the much-anticipated U.S. approval of spot bitcoin exchange-traded funds, Reuters reported.
The approval opens the way for institutional buying and had been priced in over recent months, driving the cryptocurrency up 70% since mid-October.
The main event for the currency market on Thursday is monthly U.S. consumer inflation, which economists expected to have slowed again in December.
The dollar has slid in recent weeks, as investors have become increasingly convinced the Federal Reserve could start cutting rates as early as March – an expectation many in the market see as excessive.
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