🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

FOREX-U.S. dollar slides, posts worst weekly run of losses in a decade

Published 15/08/2020, 06:09 am
© Reuters.
EUR/USD
-
USD/JPY
-
USD/NOK
-
DX
-

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

* Mixed U.S. data fails to lift dollar

* Dollar index posts longest weekly losing streak since 2010

* Yen sees worst week vs dollar in two months

(Adds new comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, Aug 14 (Reuters) - The dollar dropped on Friday, falling for eight straight weeks, as investors 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 consecutive weeks of losses represent its longest weekly run of declines in a decade, Refinitiv data showed, with Friday's decent batch of U.S. economic data failing to lift the greenback.

"Because of higher coronavirus case counts in the U.S., you have the prospect of longer restrictions," said Ranko Berich, head of market analysis, at Monex Europe in London. "You have the prospect of longer-lasting drags to human behavior and that means slower recovery in the United States than other developed economies."

The United States has 5.01 million confirmed coronavirus cases and more than 160,000 deaths, more than any country. for additional stimulus to combat the pandemic 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. however, announced on Friday the White House is preparing to provide relief for the economic pain caused by the virus as legislation stalls in Congress, saying his administration is ramping up to send money to families, state and local governments, and businesses. however, reacted little to his announcement.

In afternoon trading, the dollar index slipped 0.1% to 93.124 =USD . The eight weeks in a row of losses was the worst losing streak since June 2010.

The dollar was unmoved after 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 U.S. consumer sentiment and industrial production had little dollar impact on Friday. other currencies, the dollar had its best weekly percentage gain versus the yen in two months. It was last down 0.3% at 106.60 yen JPY=EBS .

The euro, meanwhile, continued its rise, up 0.2% at $1.1835 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.

"We saw the euro touch $1.19 last week, but we haven't really gotten up there again," said John Doyle, vice president of dealing and trading at Tempus, Inc. in Washington.

"That dollar demise that people have been calling for hasn't come to fruition yet. The big momentum behind the dollar falling maybe slowing somewhat."

The biggest loser this week has been the New Zealand dollar NZD=D3 , which was down 0.8% against the dollar this week, its worst weekly fall since mid-June.

The Reserve Bank of New Zealand this week flagged increased bond buying and again mentioned the prospect of negative rates.

========================================================

Currency bid prices at 3:58PM (1958 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1834

$1.1812

+0.19%

+5.57%

+1.1850

+1.1784 Dollar/Yen

JPY=

106.5900

106.9200

-0.31%

-2.09%

+107.0300 +106.4500 Euro/Yen

EURJPY=

126.14

126.31

-0.13%

+3.44%

+126.4700 +125.7500 Dollar/Swiss

CHF=

0.9095

0.9096

-0.01%

-6.02%

+0.9122

+0.9087 Sterling/Dollar GBP=

1.3084

1.3063

+0.16%

-1.32%

+1.3142

+1.3049 Dollar/Canadian CAD=

1.3257

1.3220

+0.28%

+2.09%

+1.3270

+1.3206 Australian/Doll AUD=

0.7173

0.7148

+0.35%

+2.16%

+0.7175

+0.7133 ar

Euro/Swiss

EURCHF=

1.0764

1.0747

+0.16%

-0.81%

+1.0772

+1.0742 Euro/Sterling

EURGBP=

0.9044

0.9038

+0.07%

+6.98%

+0.9050

+0.9002 NZ

NZD=

0.6544

0.6545

-0.02%

-2.85%

+0.6559

+0.6527 Dollar/Dollar

Dollar/Norway

NOK=

8.8947

8.8813

+0.15%

+1.32%

+8.9499

+8.8681 Euro/Norway

EURNOK=

10.5272

10.4930

+0.33%

+7.01%

+10.5505

+10.4860 Dollar/Sweden

SEK=

8.6989

8.6841

+0.27%

-6.94%

+8.7307

+8.6744 Euro/Sweden

EURSEK=

10.2956

10.2680

+0.27%

-1.66%

+10.2980

+10.2580

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.