SINGAPORE (Reuters) – The dollar rallied for the worst week of the year on Friday, as investors cheered in Joe Biden’s administration by buying more risky currencies and an updated bet that a rebound could -revised pandemic to push the green background even lower.
Against the euro, the dollar is down almost 0.8% this week and hit a weekly low of $ 1.2173 per euro on Friday. The dollar index has fallen at the same weekly level, and was stable at 90.075 early in the Asian session.
The euro had received some support from the European Central Bank maintaining a stable and appropriate policy.
Scandinavian currencies have driven cost higher, with the Norwegian crown up 1.8% for the week, aided by Norges Bank’s decision to keep their policy rate stable, albeit at zero. The Swedish crown is up 1.4% for the week.
Risk-sensitive Antipodean currencies have also been winning, with the Australian dollar up 0.8% and the kiwi climbing more than 1% over the week to date.
Sterling rose to a 2-1 / 2-year high of $ 1.3745 overnight on hopes of a reversal of the British vaccine distribution in growth. It maintained at that level on Friday, up 1% for the week.
The moves are driven by feelings of erosion of gains made by the U.S. dollar since Democrats took control of U.S. Congress earlier this month. The dollar had gone up along with the U.S. Treasury’s output in anticipation of further fiscal stimulus and government borrowing under the Biden administration.
“It is very difficult to run away from the strong negative correlation between US equity performance and the US dollar,” said Ray Attrill, head of FX strategy at the National Bank of Australia, while market sentiment stock pouring.
“I think the market is far happier with a focus on the potential benefits of Biden administration’s proposed fiscal plans … rather than any of the negatives,” he said.
“At the moment, although he seems to be up and down for stocks, he has put the dollar back on his back. ”
The dollar was stable against the Japanese yen on Friday at 103.58, but has lost 0.3% over the week.
After heavy selling in Bitcoin the cryptocurrency fell 5% in Asian trading on Friday to hit an almost three-week high of $ 28,800.
Later on Friday, purchasing managers ’index figures are expected across Europe and the United States, and weakness is expected as new waves of coronavirus infection have moved new locks and slowed growth.
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Cash offer prices at 9:38 AM in Singapore (0138 GMT)
RIC Description Last US Close Pct Change YTD Pct High Bid Low Bid
Previous change
Session
Euro / Dollar $ 1.2167 $ 1.2169 -0.01% -0.41% +1.2178 +1.2162
Dollar / Yen 103.5600 103.5100 + 0.08% + 0.30% +103.6100 +103.5100
Euro / Yen 126.01 125.91 + 0.08% -0.72% +126.0600 +125.9000
Dollar / Switzerland 0.8853 0.8851 + 0.02% + 0.07% +0.8856 +0.8846
Sterling / Dollar 1.3721 1.3736 -0.09% + 0.45% +1.3735 +1.3718
Dollar / Canada 1.2657 1.2638 + 0.17% -0.59% +1.2660 +1.2635
Aussie / Dollar 0.7755 0.7765 -0.12% + 0.81% +0.7769 +0.7750
NZ 0.7207 0.7220 -0.14% + 0.40% +0.7224 +0.7209
Dollars / Dollars
All spots
Spotan Tokyo
Europe spots
Vulnerability
Tokyo Forex market information from BOJ
Reciting with Tom Westbrook; Edited by Ana Nicolaci da Costa