High-risk Currencies Offset Some of Their Losses, And Dollar is Stable Below its Two-Month High

The dollar settled below its recent two-month high, and riskier currencies erased some of their weekly losses, while stock markets received a boost from hopes of resuming talks on fiscal stimulus in the United States.

The dollar is moving towards achieving its best weekly performance since early April, driven by an aversion to risk, which made dealers abandon their selling positions in the US currency, as the prospects for a global economic recovery darkened in light of a second wave of Coronavirus infections in Europe.

The dollar fell slightly today, while riskier currencies, which fell sharply this week, gained in early trading in London.

Shares rose after a rally driven by technology stocks late on Wall Street, while sentiment received support from a senior lawmaker saying that Democrats in the US House of Representatives are working on a $ 2.2 trillion coronavirus-related stimulus package that may be voted on next week.

The New Zealand dollar rose to 0.6584, climbing 0.6% since the close in New York, but it was still down 2.6% for the week.

The Australian dollar gained 0.5% to $ 0.7086, but it was still posting its worst weekly performance against the greenback since March.

After the opening of European markets, the dollar index, which tracks the performance of the US currency against a basket of six currencies, fell by less than 0.1% during the session to 94.246, but was up 1.3% for the week, the biggest weekly jump in nearly six months.

The Euro rose 0.1% today to $ 1.1676, but is down 1.4% for the week.

The Yen rose slightly against the dollar, to 105.385, while the Swiss Franc gained about 0.1% against the Euro.