Dollar Leaps by 0.2% Against Basket of Currences

Dollar

The United States of America Dollar, against a basket of currencies, was flat on Friday, February 9, after gaining 1.1 percent this week. The U.S. currency remains down 2.1 percent this year.

The Greenback surged 0.2 percent to 108.985 yen, after slipping 0.5 percent overnight. For the week, it was on track to lose 1.5 percent against its Japanese peer amid risk aversion in broader markets.

The dollar index , which measures the greenback against a basket of currencies, has risen over 1 percent so far this week, its best since the week ended Oct. 27, 2017.

The dollar also recovered against the yen in early European trading after earlier falling to near four-month lows as investors sought out safety in the Japanese currency.

The dollar fell as low as 108.50 yen, nearing its four-month low of 108.28 on Jan. 26. It later edged up to 109.255 yen, a 0.5 percent gain, but was still down for the week.

There was limited market reaction after the U.S. Senate approved a budget deal including stopgap government funding bill, which was too late to prevent a federal shutdown that was already underway.

Before this week’s market mayhem, one of the most popular trades in the currency market was to buy the euro on expectations of unwinding of stimulus by the ECB and to sell the yen on the view that the Bank of Japan will be the last to exit from its ultra-loose policy.

The Swiss franc dipped 0.2 percent to 0.9383 franc per dollar after advancing about 0.7 percent the previous day, while the euro was on course for its worst week against the dollar since October as it nudged up to $1.2271.

 

 

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