Let us check the market. Federal Reserve officials are warning that a recovery in hiring has raised doubts about how quickly the largest economy in the world will bounce back from the coronavirus. Furthermore, there was a larger-than-expected rise in weekly jobless claims in the United States.
Those concerns have combined with an excess supply of United States dollars already in circulation. Those most probably will weigh on the greenback in the coming weeks. That is what analysts say.
The dollar index measures the greenback against a basket of rivals. So, the dollar index rose as the euro fell and was last up by 0.3%, at 93.005.
Democrats and Republicans struggle to agree on additional stimulus to boost the economy. Nonetheless, in the eurozone, investors have welcomed the scale of the economic packages officials recently launched.
Ulrich Leuchtmann is a Commerzbank currency analyst. He said that the uncertainty concerning the dollar was undermining the greenback’s safe-haven credentials.
He said that, with everything said: a sustainable United States dollar recovery remains unlikely if the market considers the dollar to be an excessively high risk.
On Friday, the standout performer was China’s yuan. In offshore markets, it briefly hit 6.8935. This is its most reliable indicator since January 21, before it fell back as the dollar recovered.
Since the Chinse city of Wuhan was first put on lockdown, the currency of China has recovered all its losses, as investors bet on a strong recovery in the country’s economy. Wuhan is the city where the coronavirus initially broke out, for clarity.
The British pound slipped back below $1.32. Recently, it was down 0.2% at $1.3196. Meanwhile, it rose against the euro to 89.50 pence.
Elsewhere, currency moves were contained. The United States dollar declined 0.3% against the Japanese yen to 105.50.
The euro declined 0.5% as the United States dollar rose.
This is leading news of the market.