US Dollar Index Continues Moving Towards Its Two And a Half Year Low

The US dollar index on Monday, December 7, remained near a two-and-a-half-year low it reached on Friday, as weak US job data boosted expectations for economic aid, while the British pound fell as Britain and the European Union embark on a final attempt to strike a trade deal.

Fears are growing of a British exit without a trade deal on December 31 when Britain completely withdraws from the European Union.

In the United States, data showed that non-farm payrolls increased 245,000 last month, the lowest increase since May, in an indication that the employment recovery is slowing in light of the third wave of coronavirus infections. The dollar index rose 0.1% to 90.96, close to its lowest level since April 2018 of 90.47.

And the dollar selling accelerated in the past week, especially against the Swiss franc, the euro and the Canadian dollar. The euro fell 0.1% to $ 1.2107 but remained near the level of 1.2177, its highest since April 2018.

The pound slipped 1% to $ 1.3287, and it also fell 1% against the euro, to 91.07 pence. The Norwegian krone lost 0.8% to record 8.8590 for the dollar, with a drop of 0.5% against the euro, to 10.7255, after it earlier touched a two and a half week low at 10.7340.

The Australian dollar fell 0.2% to 0.7407 against the dollar.