American Dollar dwindles, posts worst weekly plunge in four months



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American Dollar dwindles, posts worst weekly plunge in four months

On Friday, in a holiday-thinned trading session, the US Dollar Index (DXY) measured against a basket of six major currencies on an average, had reported its worst weekly plunge in more than four months, as a restoration in appetite for riskier assets had led to a decline in US Dollar against most major and emerging market currencies.

In point of fact, in the week’s broad-based decline in US Dollar was catalysed by encouraging developments over the newly identified Omicron variant, as market participants seemed to be banking on a much-reduced fiscal repercussion of the variant.

On top of that, earlier in the week, major pandemic vaccine makers such as Pfizer Inc., Moderna Inc alongside AstraZeneca among others were quoted saying that their booster doses had successfully generated antibodies against the Omicron variant, while a new study had unveiled on Friday that even high-risk patients infected with Omicron variant would less likely to require hospital admissions.

Besides, US FDA (Food and Drug Administration) approvals of pandemic Rx oral treatment from Merck Co alongside Pfizer Inc had bolstered investors’ optimism further.

Dollar posts steepest weekly percentage decline since August

Citing statistics, on Friday’s FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies on an average shed 0.1 per cent to 95.98, wrapping up the week 0.7 per cent lower which happens to be the Index’s steepest weekly percentage decline since August.

Risk-sensitive loonies such as Australian Dollar closed at $0.7243 against its American counterpart, winding up the week just a notch shy of a five-week peak hit on Thursday. Besides, the British Pound closed out the week at $1.341 against the greenback, rising as much as 1.4 per cent in the week, while the bloc’s common currency euro, shared among 19-member states, added 0.1 per cent to $1.134.

US Treasury bond Yields slightly edged higher with 10-year Treasury bond notes wrapping up the week at 1.492 per cent, as investors dumped US Treasury bonds amid an increase in appetite for riskier assets.