US Dollar eases as risk appetite makes cautious return
by SOURAV D | VIEW 1168
On Friday, the safe-haven American Dollar pulled back slightly alongside Swiss Franc and Japanese Yen, as risk-appetite seemed to have restored after a latest leg of rally in US Treasury bond notes had run out of fireworks with global equity indices stabilizing. Nonetheless, despite Friday’s downturn, the safe-haven Japanese Yen had scored the biggest weekly rise since last November, while the greenback ended the week marginally lower ahead of critical data such as retail sales due as early as by next week. In point of fact, the US Dollar Index (DXY) measured against a basket of six major currencies on an average fell 0.11 per cent to 92.25 on Friday, wrapping up the week with marginal losses as American currency remained largely rangebound over the week ahead of key economic data with traders assessing the pace of global economic recovery in context of an upsurge in delta variants across the South-east Asia.
US Dollar falls as risk-appetite returns
Citing statistics, as the US Dollar bulls seemed to be taking some chips off the table, the safe-haven Japanese yen shed 0.39 per cent to 110.180, but had reported its strongest weekly rise since early-November, while the Swiss Franc shed 0.04 per cent to $0.9155 against its American counterpart.
Besides, Canadian Dollar rose 0.25 per cent against the greenback to $1.25 following release of an upbeat employment report in June, while commodity-linked loonies such as Aussies and Kiwis gained ground in line with an increase in the prices of industrial metals alongside crude oil.
Australian Dollar soared 0.71 per cent to $0.7482, while the New Zealand Dollar climbed 0.66 per cent to $0.6991 after falling more than 1 per cent in the previous session. In tandem, the bloc’s common currency euro shared among 19 economies across the eurozone, added 0.2 per cent to $1.1867 following a 0.45 per cent rise in the previous session.
Meanwhile, adding that the latest sell-off wave in US Dollar Index would likely to be a part of a week-end profit-taking move ahead of key US data such as retail sales and inflation numbers for June, a chief investment officer at Saxo Bank, Steen Jakobsen said, “This week’s price action suggests a technical risk-off with a bigger repositioning of reflation trades. ”