The U.S. dollar traded in tight ranges on Friday. It was poised for a weekly loss against major currencies after downbeat data turned the economic outlook negative. On the other hand, positive comments from New Zealand’s finance minister boosted its currency.
The U.S. dollar soared on Thursday after the Fed upgraded its 2020 economic forecast this week to trade in negative territory. However, the currency lost those gained today. It traded at 92.923 against a basket of major currencies at last, on track for a 0.3% weekly decline.
Furthermore, the greenback changed insignificantly against the Japanese yen at 104.81, after skyrocketing to a seven-week high at 104.52 on Thursday. The yen hovered near the 1-1/2 month high of 123.29 versus the euro, trading at 124.18.
Masafumi Yamamoto, the chief currency strategist at Mizuho Securities, stated that the dollar/yen tumbled down overnight almost too much, although it’s been falling since Monday. According to him, losses in U.S. stock futures were also contributing to a weaker greenback.
What about the Asian and European currencies?
In Asia, FX markets held tight ranges as well. Despite that, the New Zealand currency hit a two-week high of $0.6785. Finance Minister Grant Robertson made a positive statement about the economy’s recovery prospects in television interviews, boosting the kiwi.
The Australian dollar stood at $0.7310, while the Swiss franc traded at 0.9086 against the greenback. The offshore Chinese yuan changed hands at 6.7521 per dollar after soaring to a high of 6.7332.
Meanwhile, the euro changed slightly at 1.1849 per dollar on Friday. Traders will focus on the eurozone PMI data next week. Some analysts noted that a strong PMI could take the currency back to the 1.19 level against the dollar.
The British Pound bought $1.2959 after losing around one cent on Thursday. The Bank of England stated that it was looking more closely at how it might implement negative interest rates, causing Sterling’s dip.
COMMENTS