Connect with us

Hi, what are you looking for?

Investing Ideas

Dollar edges higher but still set for biggest weekly loss since May

Economy50 minutes ago (Jul 30, 2021 10:21AM ET)

(C) Reuters. FILE PHOTO: A trader shows U.S. dollar notes at a currency exchange booth in Karachi, Pakistan December 3, 2018. REUTERS/Akhtar Soomro

By Saqib Iqbal Ahmed and Ritvik Carvalho

NEW YORK (Reuters) – The dollar edged higher on Friday, as upbeat economic data helped reverse some of the losses from earlier this week when dovish remarks by the U.S. Federal Reserve scuttled a month-long rally in the U.S. currency.

The dollar index, which measures the greenback against a basket of six currencies, was 0.1% higher at 91.966. The index was down 1% for the week, on pace for its worst weekly performance since the first week of May.

(Graphic: Dollar index set for worst week since May:

The greenback’s downtrend began after Fed Chair Jerome Powell wrong-footed dollar bulls following a policy meeting this week by saying that rate increases were “a ways away” and the job market still had “some ground to cover”.

“While the dollar suffered a notable setback this week, how significant it could prove may be gleaned by nonfarm payrolls next week,” said Joe Manimbo, senior market analyst at Western Union (NYSE:WU) Business Solutions in Washington.

On Friday, the dollar found some support after data showed U.S. consumer spending rose more than expected in June as COVID-19 vaccinations boosted demand for travel-related services and recreation, even though part of the increase reflected higher prices, with annual inflation accelerating further above the Federal Reserve’s 2% target.

The euro was 0.07% lower against the greenback but near a 1-month high, after data showed the euro zone economy grew faster than expected in the second quarter, pulling out of a recession caused by the pandemic, while inflation shot past the European Central Bank’s 2% target in July.

Elsewhere, the Chinese yuan has recovered all of its losses from Tuesday’s plunge to trade at 6.4609 per dollar.

Sentiment was helped by China’s attempt to calm frayed investor nerves by telling foreign brokerages not to “overinterpret” its latest regulatory actions.

With investors shying away from riskier assets on Friday, both the Australian and New Zealand dollars, were down on the day, but remained near two-week highs.

Sterling hovered close to a one-month high versus the dollar on Friday and was on course for its strongest week since December ahead of a Bank of England meeting next week.

Dollar edges higher but still set for biggest weekly loss since May

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...


Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...


(C) Reuters. FILE PHOTO: Indian billionaire Gautam Adani speaks during an interview with Reuters at his office in the western Indian city of Ahmedabad...

World News

Nowadays, you can buy just about anything online and have it delivered directly to your doorstep – even marijuana. Say goodbye to shady websites...

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved