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FOREX-Dollar inches up but set for biggest monthly drop in a decade

Published 01/08/2020, 12:58 am
Updated 01/08/2020, 01:00 am
© Reuters.
EUR/USD
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USD/JPY
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USD/NOK
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PRU
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DX
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* Dollar index up slightly after recent weakness

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds details, latest prices, changes byline, dateline, previous LONDON)

By Caroline Valetkevitch

NEW YORK, July 31 (Reuters) - The dollar was up slightly on Friday but on track for its biggest monthly drop in a decade as concerns that an increase in U.S. coronavirus cases will slow the rebound in the economic recovery.

Confidence in the dollar was undermined further after U.S. President Donald Trump on Thursday raised the possibility of delaying the Nov. 3 presidential election. dollar mostly held gains after data on Friday showed U.S. inflation-adjusted consumer spending has pulled out of April's deep hole but remains below its pre-pandemic level.

On Thursday, advance gross domestic product (GDP) data showed contraction of an annualised 32.9% in the second quarter, the quickest pace since the Great Depression.

The dollar index slid as low as 92.539 =USD earlier, the lowest since May 2018, but has recovered to trade up 0.32% at 93.039.

It has fallen more than 4% in July, which would be the biggest monthly drop since September 2010, with most of the drop coming in the last 10 days as new cases of coronavirus surged across several U.S. states and some recent data pointed to an economic recovery losing steam. a risk-off episode, it looks as if the dollar wants to just pull back a bit, and the euro has been prominent," said Quincy Krosby, chief market strategist at Prudential Financial (NYSE:PRU) in Newark, New Jersey.

The euro was at $1.1833 EUR=EBS , down 0.11% on the day.

The currency was little moved by data showing the euro zone economy recorded its deepest contraction on record in the second quarter while the bloc's inflation unexpectedly ticked up in July. euro traded below $1.10 as recently as May, but after European Union leaders agreed this month to a 750 billion euro economic recovery fund - while also taking on debt jointly in a major boost to regional cooperation - many investors have warmed to the currency again.

On a trade-weighted basis, the euro is at its highest since 2014 EUREER=ECBF .

The dollar's drop this month has created space for a rebound in currencies hit hard in March, when investors rushed for the safety of the greenback as panic over the coronavirus gripped markets.

Against the yen, the dollar earlier hit a 4-1/2-month low but last stood at 105.71 JPY=EBS , up 0.95%.

The British pound surged to $1.3156 GBP=D3 , up 0.48% on the day.

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Currency bid prices at 10:35AM (1435 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1833

$1.1846

-0.11%

+5.56%

+1.1908

+1.1803 Dollar/Yen

JPY=

105.7100

104.7200

+0.95%

-2.89%

+105.7700 +104.1900 Euro/Yen

EURJPY=

125.09

124.06

+0.83%

+2.57%

+125.2000 +123.8500 Dollar/Swiss

CHF=

0.9112

0.9087

+0.28%

-5.86%

+0.9129

+0.9057 Sterling/Dollar GBP=

1.3156

1.3093

+0.48%

-0.78%

+1.3169

+1.3081 Dollar/Canadian CAD=

1.3427

1.3422

+0.04%

+3.40%

+1.3439

+1.3404 Australian/Doll AUD=

0.7169

0.7193

-0.33%

+2.11%

+0.7227

+0.7162 ar

Euro/Swiss

EURCHF=

1.0785

1.0768

+0.16%

-0.62%

+1.0798

+1.0755 Euro/Sterling

EURGBP=

0.8994

0.9045

-0.56%

+6.39%

+0.9063

+0.8981 NZ

NZD=

0.6659

0.6698

-0.58%

-1.14%

+0.6715

+0.6651 Dollar/Dollar

Dollar/Norway

NOK=

9.0685

9.0746

-0.07%

+3.30%

+9.0871

+9.0278 Euro/Norway

EURNOK=

10.7335

10.7520

-0.17%

+9.10%

+10.7825

+10.7140 Dollar/Sweden

SEK=

8.7079

8.6902

+0.04%

-6.84%

+8.7230

+8.6431 Euro/Sweden

EURSEK=

10.3044

10.2998

+0.04%

-1.57%

+10.3155

+10.2740

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ U.S. dollar index

https://tmsnrt.rs/2CVqUXv

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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