Dollar Drops 0.16% Against Major Currencies

 

The dollar, on Friday, January 13, was down 0.16 percent against a basket of major currencies at 101.19 .DXY, but was off a five-week low hit this week.

The greenback was down 0.2 percent at 114.54 yen JPY=. The dollar index, though, posted its worst weekly performance in more than two months.

The greenback crawled towards it worst week in two months on Friday as a result of softer-than-expected trade data from China.

The dollar index .DXY, which measures it against six of the other top world currencies, was down fractionally for a third straight day in early London trading and almost one percent lower on the week.

Individually it stood at 114.7 yen JPY=EBS having given up modest ground made in Asia, while the euro EUR=EBS clawed up to $1.0630 to bolster a fourth straight week of gains.

Some analysts however think the dollar could regain an upper hand as soon as more details of Trump’s stimulus become clear.

The week’s other main G10 loser, sterling, remained shaky on Friday as it was confirmed that Prime Minister Theresa May would give a speech on Tuesday on Britain’s plan to leave the European Union.

One-week implied sterling volatility – options contracts which allow traders to bet or hedge against near-term swings in the currency, spiked to their highest since October at 14.775 GBPSWO=.

It was also set to be the pound’s worst week against the euro since the start of October. It barely budged at 87.25 pence per euro EURGBP=D4 on Friday but was down almost 2 percent from where it started the week.

Against the dollar it was a touch higher on the day at $1.2180 GBP=D4 but on course for its fifth weekly drop in the last six, having hit a three-month low of $1.2038 on Wednesday.

 

 

 

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