Fri, March 29, 2024

The U.S. dollar declined. What about Japanese Yen and Euro?

The U.S. dollar declined. What about Japanese Yen and Euro?

The U.S. dollar dropped from a three-week high on Friday. However, it still ended the week with a modest gain, since rising tensions between the U.S. and China and reports about the second wave of coronavirus infections worried investors. The greenback gained 0.5% against a basket of currencies during this week.

It seems the U.S. economy is in a grimmer state, than investors anticipated. Analysts forecast a 35% annualized second-quarter contraction. While they still expect some recovery in the second half of the year, the economy probably won’t be able to rebound fully in 2020.

Rodrigo Catril, the senior foreign exchange analyst at National Australia Bank, noted that the market is in a wait-and-see mode, waiting to see whether U.S.-China trade tensions escalate.

Amid increasingly bitter exchanges between U.S. and China, traders are questioning the future of a partial trade deal, which was signed in January. As a result, the Chinese yuan plummeted down to a one-week low overnight. Still, it managed to recover losses, steading at the end of the session.

It seems China’s manufacturing sector is rebounding quickly. Traders are watching the retail figures for signs of a return of consumer spending.

How did Asian and European currencies fare? 

The risk-sensitive Australian dollar was steady in the morning trade, at $0.6464 on Friday. However, it tumbled down by 1% this week. This is the currency’s first weekly loss since early April. Concerns about the pandemic’s rebound caused the Aussie’s fall down.

On the other hand, the kiwi climbed up to $0.6008 from a Thursday three-week low of $0.5958. But most major currencies remained steady as larger economies started to ease lockdowns.

The Japanese yen traded at 107.40 per dollar. Japan lifted a state of emergency in large parts of the country on Thursday.

The British pound is under pressure, as it is at $1.2221. It tumbled down to a five-week low of $1.2161 overnight. The British government reiterated its refusal to extend the Brexit transition deadline beyond December, causing the currency’s decline.

The euro also collapsed, with an almost five-year low against the Swiss franc of 1.502 francs as the crisis put pressure on it. The currency last traded at $1.0840.

YOU MAY ALSO LIKE

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look: Atlas Lithium signs investment and offtake agreements with Mitsui. Mitsui

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in