US Dollar on The Way to Its Best Weekly Performance in 3 Months

The dollar is heading towards recording its best weekly performance in three months Friday, February 5th, driven by growing confidence that the US economic recovery will surpass its global peers.

The dollar index touched its highest level in two months in Asian trading in light of indications of the strength of the labour market, while US non-farm payrolls data, which are closely watched, will be released later today. The index fell in early trading in London. The dollar also rebounded against the euro and the yen during trading in Asia, but the two currencies compensated for their losses in European trade.

The dollar index touched 91.60 for the first time since December 1, before it fell to 91.375.

The index rose every day this week and is on the upward path of 1.1% on a weekly basis, the largest rise since the first of November and comes after a 0.3% increase in the previous week. The dollar is receiving support from the high yields of long-term US Treasury bonds, which comes as traders prepare for a major financial stimulus.

Democrats in the US Senate are preparing for a long ballot session aimed at bypassing Republican opposition to President Joe Biden’s proposal to mitigate the $ 1.9 trillion coronavirus repercussions.

The dollar fell 0.2% to 105.36 yen on Friday, after rising to 105.70 for the first time since October 20. The euro rose 0.2% to $ 1.1981, after falling to 1.1952, the level not recorded since the first of December.