Dollar Settles And Euro near its 4-Week Low After ECB announcement

The dollar halted its rally on Friday, while the euro remained near a four-week low against the US currency after the European Central Bank hinted at more monetary easing by the end of the year.

Overnight, the euro’s decline, combined with US data, helped push the dollar to near a four-week high against a basket of currencies.

The European Central Bank kept interest rates stable but pledged to contain the growing repercussions of the second wave of coronavirus infections, saying it would define its response more precisely by its meeting in December, as the market in general expects.

The euro rose slightly to $ 1.1679 in Asia after hitting a four-week low of $ 1.1650 in US overnight trade.

Against the yen, the common European currency eased slightly to 121.79 yen.

Thursday’s data showed that the US economy grew at a record pace in Q3 and an improving trend in US jobless claims, while the negative effects of the recession of the Coronavirus continue.

The dollar index settled, but it is near its highest level in four weeks, which it reached on Thursday at 93.916, and is about to record the largest weekly gains since September.

But the uncertainty surrounding the US presidential election scheduled for Tuesday and coronavirus fears continues in the market.

The dollar fell against the Japanese yen to 104.30, after rising overnight from a five-week low, if it benefited from recovering US Treasury yields and broad dollar purchases.

The pound traded at $ 1.2906, and the currency was affected by the absence of news related to Britain’s exit from the European Union, as there are only two months left for London and the European Union to reach a post-secession trade agreement.

The Australian dollar last traded at $ 0.7032, just over a three-week low of $ 0.7002, which it hit overnight.

Meanwhile, the New Zealand dollar stabilized, and last traded at 0.6619 per dollar.