The US dollar ends the week higher, retracing setbacks incurred during the week against others in the basket of currencies.
The greenback weathered another tough week where it tumbled against the euro and the yen, where the latter sent it to record its largest weekly drop after a month.
The tracker of the greenback’s performance against other baskets of currencies, the US dollar index, recorded a 0.08% increase to 93.043.
However, the pull is still nursing Wednesday’s retreat, which was at 0.7%, driving the USD to a seven-week low.
Trump’s unprecedented “more civilized behavior” on Thursday’s face-off gave cushion to the US currency.
Spectators express their surprise that the incumbent president did not constantly interrupt Biden and moderator Chris Wallace, due to what the first debate held on September 29.
According to experts, Joe Biden aced the last debate. The news gave investors hope for a looming change should polls turn out to be true.
Due to the US politics and economy’s diverging forces, anti-risk sentiments turned out stronger, capping further gains for the USD.
However, analysts note that a bullish trajectory is not yet in sight.
Elsewhere, the USD/JPY pair edged lower by 0.11%, settling at 104.70. This is caused mainly by the country’s still volatile consumer price index after it tumbled for the second consecutive month.
Japan’s CPI slashed 0.3% in September, following a 0.4% decline in August.
Nevertheless, the Japanese currency will end the week with its highest weekly rise since mid-September. Investors trickle to yen amid the anticipated turbulent trade ahead of November elections.
Pound Trades Lower with Brexit Uncertainty
Consequently, the yuan steadied modestly against the dollar on the latest foreign exchange charts.
The USD/CNY pair added 0.02%, settling at 6.6835.
The Chinese currency has support from China’s State Administration of Foreign Exchange statement, saying that the CNY had been more stable than anticipated.
Meanwhile, the AUD/USD pair inched down another 0.04% to 0.7112.
This is significantly better than the previous declines recorded by the Aussie along with the central bank’s monetary easing announcement.
The NZD/USD pair slashed 0.10% after the country released a below-than-expected consumer price index.
Nevertheless, New Zealand’s CPI 0.7% quarter-on-quarter. Short of analyst expectation of 1.4% for the third quarter of the year.
Elsewhere in the UK, the pound fell by 0.15% to 1.3062. This is primarily due to uncertainty over the long-standing Brexit deal.
The two parties’ chief negotiators met on Thursday and faced what is believed to be the deal’s trickiest part.
Experts in the field noted that there is still a significant risk that the negotiation may result in a no-deal Brexit.
- Trading Instrument