The Greenback Wallows Near a Week Low as Taper Fears Ease

On Friday, the greenback wallowed near a one-week low after traders mostly brushed off their tapering fears.

The US dollar index, which trails the greenback against its six other rival currencies, plunged 0.34% to $93.15.

In addition, the currency followed its Thursday’s decline of 0.38% to $93.10, which erased its gains this week.

Moreover, the US manufacturing purchasing managers index fell to 60.50 points from the August data of 61.10. It also came in lower from the market expectations of 61.50. 

Then, the services PMI plummeted to 54.40 from the previous number of 55.10. It decreased from the forecasted figure of 55.00, which is bearish for the greenback.

At the same time, risk appetite in the market returned as taper fears eased.

The CAD currency improved 0.21% to $1.27 despite the decline of 1.00% from 4.70% in the Canadian Core Retail Sales.

In Switzerland, the SNB retained its third-quarter interest rate of -0.75%.

Consequently, the Swiss franc decreased 0.12% to $0.92.

Then, the Australian dollar plummeted 0.34% to $0.72.

The same with the New Zealand dollar as it fell 0.35% to $0.70.

Moreover, most Asian currencies posted gains on the market.

For instance, the Japanese yen climbed 0.12% to $110.43.

Then, the Chinese yuan rose 0.02% to $6.47.

Following the hike, the South Korean won improved 0.13%  to $1,176.13.

Likewise, the Hong Kong dollar slightly climbed 0.01% to $7.79 as the Singapore dollar surged 0.19% to $1.35.

Similarly, the Malaysian ringgit edged up 0.17% to $4.19 as the Thailand baht extended 0.06% to 33.40%.

GBP to USD Exchange Rate Slips as Greenback Fell

Meanwhile, the GBP to USD exchange rate slipped as the greenback fell on increased risk appetite. 

The Pound sterling decreased 0.09% to $1.37, reversing its hike of 0.67% to $1.37 yesterday. 

Furthermore, the UK Services PMI, a leading indicator of overall economic performance, declined to 54.60 points from 55.00.

Consequently, the manufacturing PMI lowered to 56.30 from 60.30 last August. 

In addition, the composite PMI tumbled to 54.10 from the previous data of 54.80.

Moreover, the Bank of England kept its main interest rate at 0.10% and $1.22 trillion asset purchase target. 

Subsequently, market participants looked forward to an interest rate hike in March 2022. 

Meanwhile, the euro to dollar exchange rate lost 0.03% to $1.17.

Elsewhere, other European currencies against the greenback were mixed on Friday trading. 

The Swedish krona extended 0.19% to $8.63 as the Norwegian krone improved 0.06% to $8.58.

At the same time, the Russian ruble increased 0.26% to $72.90.