US Dollar Increases Its Losses After a Week of Decline

The dollar exacerbated its losses, after a week of declining pushing it to its lowest level in two and a half years, as its decline attracted more short sellers seeking to make an easy profit.

The dollar index recovered during the session and rose in recent trading 0.2% at just under 90, but it is still heading towards a 1% drop during the week.

The US currency reached its lowest level in more than two years at 89.723 on Thursday.

Analysts expect policy updates from central banks in the United States, Japan, Britain and Switzerland to have little impact this week to alter currency market trends in recent times and the long-term weakness of the US currency.

The Bank of Japan announced today that it will extend its loan program aimed at easing the repercussions of Covid-19 by six months and a surprise review of its policies to consider “another effective and substantial monetary easing”, which will be completed by March 2021.

The dollar rose half a percent against the yen to 103.959 yen, but was still down 0.5% against the Japanese currency for the week.

The pound gave up some of its gains against the dollar and the euro as tough talks continued on a post-Brexit trade deal between the UK and the bloc.

Bitcoin was trading at about $ 23,000 after it rose to an all-time high on Thursday.