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FOREX-U.S. dollar slides, on pace for worst weekly stretch in a decade

Published 15/08/2020, 01:16 am
© Reuters.
EUR/USD
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USD/JPY
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USD/NOK
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DX
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* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

* Mixed U.S. data fails to lift dollar

* Dollar index heads for longest weekly losing streak since 2010

* Yen headed for worst week vs dollar in two months

(Recasts, adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous LONDON)

By Gertrude Chavez-Dreyfuss

NEW YORK, Aug 14 (Reuters) - The dollar stumbled on Friday, falling for eight straight weeks, as investors continued to shun it and looked to other currencies whose economies are currently outperforming that of the United States in terms of managing the coronavirus pandemic.

The delay in the passage of additional U.S. stimulus for virus relief did not help the dollar's cause as well.

The dollar's eight straight weeks of losses was its longest run of weakness in a decade, Refinitiv data showed, with Friday's decent batch of U.S. economic data failing to lift the greenback.

"The fact is the domestic coronavirus in the United States is the worst epidemic of any comparable economy and that's because of the lack of management from the U.S. authorities," said Ranko Berich, head of market analysis, at Monex Europe in London.

"That has meant the outbreak has created a materially worse outlook for the U.S. economy than its peers."

Hopes for additional stimulus to combat the pandemic have faded on Friday, with the Senate and House of Representatives in recess and no fresh talks scheduled with U.S. President Donald Trump's negotiators. late morning trading, the dollar index slipped 0.2% to 93.105 =USD , on pace for eight consecutive weeks of losses, the worst losing streak since June 2010.

The dollar showed little reaction to data showing a 1.2% rise in the U.S. retail sales' headline number in July, which was lower than expected, but a higher than forecast gain of 1.9%, excluding autos. reports such as consumer sentiment and industrial production had little dollar impact on Friday. other currencies, the dollar was on track to post its best weekly percentage gain versus the yen in two months. It was last down 0.5% at 106.45 yen JPY=EBS .

The euro, meanwhile, continued its rise, up 0.1% at $1.1827 EUR=EBS , rising for eight straight weeks.

Growing faith in Europe's rebound and concern about the U.S. response as the coronavirus spreads and politicians remain deadlocked over the next relief package have bolstered the euro.

The pound GBP=D3 was also 0.4% higher against the dollar at $1.3110, as investors sought to focus on a rebound in growth in June rather than a stunning 20% quarterly contraction. biggest loser this week has been the New Zealand dollar NZD=D3 , which was down 0.8% against the dollar this week, on pace for its worst weekly fall since mid-June.

New Zealand has been dealing with a fresh coronavirus outbreak. Moreover, its central bank this week flagged increased bond buying and again mentioned the prospect of negative rates.

The New Zealand currency was last up 0.1% at US$0.6553.

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Currency bid prices at 11:00AM (1500 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1827

$1.1812

+0.13%

+5.50%

+1.1837

+1.1784 Dollar/Yen

JPY=

106.4200

106.9200

-0.47%

-2.24%

+107.0300 +106.4500 Euro/Yen

EURJPY=

125.90

126.31

-0.32%

+3.25%

+126.4700 +125.7500 Dollar/Swiss

CHF=

0.9092

0.9096

-0.04%

-6.06%

+0.9122

+0.9087 Sterling/Dollar GBP=

1.3107

1.3063

+0.34%

-1.15%

+1.3142

+1.3049 Dollar/Canadian CAD=

1.3247

1.3220

+0.20%

+2.01%

+1.3270

+1.3206 Australian/Doll AUD=

0.7171

0.7148

+0.32%

+2.14%

+0.7174

+0.7133 ar

Euro/Swiss

EURCHF=

1.0755

1.0747

+0.07%

-0.89%

+1.0761

+1.0742 Euro/Sterling

EURGBP=

0.9022

0.9038

-0.18%

+6.72%

+0.9050

+0.9002 NZ

NZD=

0.6554

0.6545

+0.14%

-2.70%

+0.6559

+0.6527 Dollar/Dollar

Dollar/Norway

NOK=

8.8980

8.8813

+0.19%

+1.36%

+8.9499

+8.8681 Euro/Norway

EURNOK=

10.5269

10.4930

+0.32%

+7.00%

+10.5505

+10.4860 Dollar/Sweden

SEK=

8.6997

8.6841

+0.22%

-6.94%

+8.7307

+8.6744 Euro/Sweden

EURSEK=

10.2909

10.2680

+0.22%

-1.70%

+10.2966

+10.2580

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