American Dollar clocks worst weekly plunge since last November as pandemic cases soar



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American Dollar clocks worst weekly plunge since last November as pandemic cases soar

On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies had wrapped up the week closer to its two-and-a-half lows as a raft of rancorous US employment data released earlier in the day had weighed heavily on investors’ morale, while the bloc’s common currency euro and the safe-haven Swiss Franc had reported their best weekly percentage gain in a month.

In point of fact, earlier in the day, the US Labour Department’s non-farm payrolls data had revealed that the US economy had added only 245,000 jobs in November that followed a rise of roughly 610,000 jobs in October, spurring up investors’ bet on a pandemic relief bill in a near-term outlook which in effect had shored up equity indices and riskier assets in expense of a sharply softening American Dollar.

Aside from that, other economic data revealed on Friday had shown that over 3.9 million Americans remained jobless since May this year, while a growing outcry from the US President-elect Joe Biden for a pandemic relief bill in a near-term outlook had ramped up market participants’ optimism further for a Govt.

stimulus bill. Nonetheless, industry analysts were quoted saying that a pandemic relief bill appeared highly unlikely before January 19, while US President Donald Trump has been scheduled to leave the Oval Office.

US Dollar reports worst weekly plunge in a month

Aside from a number of baleful employment data, optimisms over a likely rollout of pandemic vaccines as early as next week, had intensified investors’ bet on riskier assets.

Citing statistics, in the day’s FX market round off, the US Dollar Index (DXY) fell by 0.2 per cent to 90.54, while on the week, the American Dollar Index measured against a basket of six major currencies on an average faltered as much as 1.4 per cent, the Index’s largest weekly percentage decline since last November.

Against the safe-haven Swiss Franc, the American currency dived to a six-year low of $0.8886, while euro had hit a 2-1/2-year high of $1.2177, though the US Dollar had scored a 0.2 per cent gain against its Japanese peer to 104.02 Yen per Dollar.

Meanwhile, addressing to a roller-coaster uphill ride ahead for the American currency, MUFG analysts wrote in a client note, “It has been another bad week for the US dollar. It will encourage speculators to rebuild short U.S. dollar positions which have been pared in recent months.