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Yen Strengthens as Market Reacts to Credit Suisse Rescue Deal

UBS agreed to buy its struggling rival Credit Suisse for 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses. The acquisition, facilitated by Swiss authorities, led to the U.S. dollar index falling 0.501% to 103.270.

Bundle of Yens
Bundle of Yens

Bitcoin Surges as Market Recovers

Amidst the market reaction, growth assets such as Bitcoin experienced a surge. The world's largest cryptocurrency reached a nine-month high and rose 4.62% to $28,065.00.

Dollar Decline Influenced by Regional Bank Concerns

Concerns about regional U.S. banks are also affecting the dollar. First Republic Bank (NYSE: FRC) FRC.N saw its shares drop by 50% on Monday, despite large banks depositing $30 billion into the lender last week.

Euros, Pounds, and Dollars
Euros, Pounds, and Dollars

Euro and Pound Gain Against the Dollar

The euro and British pound gained against the dollar, trading at $1.0724 and $1.2281, respectively. Meanwhile, the dollar rose 0.24% against the Swiss franc at 0.928.

Federal Reserve Decision Anticipated

Investors await the Federal Reserve's decision on interest rate hikes on Wednesday. Traders expect a peak in rates in May at around 4.8%, followed by a steady series of cuts into the end of the year.

Safe-Haven Yen Rises Amid Market Uncertainty

The Japanese yen, viewed as a safe-haven currency during times of stress, strengthened 0.28% versus the greenback at 131.47 per dollar. The Australian and Canadian dollars also rose against the greenback, trading at $0.672 and 1.37 per dollar, respectively.