The United States of America dollar, on Friday, May 25, rebounded by 0.25 percent after touching two-week lows versus a basket of currencies on Thursday.
However, the greenback held under this week’s five-month highs.
Meanwhile, the British Pound Sterling, on Friday, May 25, traded near a five-month low of $1.33 on Friday, hindered by worries over Brexit and further signs of sustained weakness in Britain’s economy.
The yen, another currency deemed to be a safe-haven asset, slipped 0.2 percent against the dollar, reversing gains seen after the summit cancellation.
“The euro continues to be under pressure especially against the franc as Italian-German spreads are widening,” Societe Generale strategist Alvin Tan said, referring to the premium investors demand to hold Italian bonds compared with safer German Bunds.
The spread on 10-year respective bonds widened Friday to 200 basis points (bps), having widened 30 bps this week.
German 10-year yields fell almost 5 bps, tracking U.S. Treasuries where yields hovered near two-week lows.
The Turkish lira has given up most of the gains made after the central bank’s emergency 300 bps rate rise on Wednesday and stood at flat against the dollar. It lost 0.5 percent on Friday and is down almost 15 percent this month.
