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The dollar advanced slightly on Friday, April 9th, but it is heading towards recording its weakest weekly performance in the year as strong data in Europe stimulated, sudden weakness in US job numbers and the Reserve Board’s insistence on following an accommodative policy for investors to reduce their bets on the US currency.
While the euro and the yen are heading for the largest weekly percentage gains in four and five months, respectively, while the dollar index, which fell 0.9% this week, stands near its lowest level in two weeks at 92.17.
In the Asian session, the euro fell 0.1%, but consolidated above its 200-day moving average at $ 1.19, while the yen surpassed its 20-day moving average to settle at 109.32 per dollar, and the two currencies gained 1.3% each against the dollar this week.
The euro gained more than 2% against the pound sterling this week, recovering from its lowest level in a year at 84.7 pence, which it hit on Monday, to touch 86.81 pence, its highest level since February, in light of the growing concerns about Britain’s adoption of the AstraZeneca vaccine.
The sterling bucked the general trend against the dollar this week, and fell 0.7% since the beginning of the week, to settle at $ 1.3723.
A mildly cautious atmosphere in equity markets and the RBA’s warning of the risk of excessive lending put pressure on the Australian dollar, which fell about 0.4% to $ 0.7623, to go on a path of a weekly gain of 0.4%.
The New Zealand dollar fell 0.3% to $ 0.7036 and is up 0.3% for the week.
