TOKYO (Reuters) – The U.S. dollar held its biggest loss in 10 days on Friday after disappointing U.S. labor market data shattered hopes for a speedy recovery from the COVID-19 pandemic.
The greenback continued its traditional role as a safe-haven currency, falling in sympathy with U.S. stocks overnight after an unexpected rise in claims without weekly work to provide insight on the economic outlook.
The British pound traded near a three-year high reached overnight, when it came in bulk in more than a month, amid Britain’s aggressive vaccination program.
The dollar index remained unchanged at 90.584 early in the Asian session, following a 0.4% decline overnight a two – day short – winning cut. For the week, the criterion is now back to more or less balance.
The string of soft labor data weighs on the dollar even as other signs of stability have emerged, and as President Joe Biden’s pandemic relief efforts progress, including a proposed $ 1.9 trillion spending package.
“The prospect of a major U.S. fiscal stimulus as well as the successful rollout of vaccines are strong arguments for betting on a US recovery this year,” Rodrigo Catril, a senior foreign exchange expert at the National Bank of Australia, wrote in Sydney, in messenger note.
“But the overnight claims data is a reminder of how unfair it has been so far.”
Sterling was mostly flat at $ 1.3965 on Friday after a 0.8% jump in the previous session, when it rose as high as $ 1.3986 for the first time since April 2018.
The euro only traded at $ 1.2089 after rising 0.4% overnight.
The dollar bought 105.695 yen, little changed after a two-day return from the five-month high of 106.225 reaching Wednesday.
In cryptocurrencies, bitcoin continued to move around $ 51,500, consolidating after hitting a record high of $ 52,640 in a rally fueled by deals from Tesla Inc and others. It has risen about 78% so far in 2021, after more than quadrupling last year.
Competitive ethereum rose less to $ 1,951.89 on Friday, just pipping high the day before. It has risen about 162% this year.
On Thursday, chipmaker Nvidia Corp announced a new processor designed specifically for ethereum mining.
Reciting with Kevin Buckland; Edited by Christopher Cushing