The U.S. dollar moved toward posting its softest week in more than a month on Friday. Traders moved on riskier currencies due to revived hopes for a new U.S. stimulus package to boost the country’s economy.
Against a basket of currencies, the greenback held near a one-month low in Asia. It tumbled down by 0.9% this week, suffering its largest weekly loss since late August.
Meanwhile, the New Zealand dollar hit a new one-week high at $0.6659. The euro and the Aussie dollar also held just below week highs.
However, morning trade moves were small as signs of an impasse on Capitol Hill and the risk of disappointment at U.S. jobs data due later today held investors back.
On Thursday, Treasury Secretary Steven Mnuchin and U.S. House Speaker Nancy Pelosi failed to bridge what Pelosi described as differences over greenbacks and values.
Analysts think their talks are as a last-gasp effort to secure relief ahead of the Nov. 3 election for tens of millions of Americans and businesses.
Ray Attrill, National Australia Bank’s head of foreign exchange strategy, stated that markets surely remain susceptible to the lack of a deal on this side of the election.
How did the Asian and European currencies trade?
The risk-sensitive Australian dollar steadied at $0.7182 after skyrocketing to a high of $0.7209 overnight. Thus far, it has posted a weekly gain of 2.2%, its best since late August.
On the other hand, the Japanese yen barely moved during this week, suggesting a degree of caution remains. The yen traded at 105.55 per dollar at last. The Chinese yuan was just shy of a 16-month high it reached in offshore trade on Thursday.
Sterling experienced a bumpy overnight session, fluctuating due to the conflicting Brexit headlines before ultimately plunging as the European Union began legal proceedings over a British plan to undercut their divorce deal.
However, the pound rebounded from a low of $1.2819 to steady at $1.2884 in Asian trade, while the euro changed hands at $1.1744.
COMMENTS