Dollar resumes its rally, showing strongest week since early April
The dollar gained ground on Friday and measured its biggest weekly gain since early April as investors worried about a slowing economic recovery, rising coronavirus infections in Europe, uncertainty about U.S. stimulus, and the upcoming elections here.
While orders for key U.S. capital goods increased more than expected in August, orders for durable goods - ranging from toasters to aircraft that are meant to last three years or more - rose 0.4% in August after jumping 11.7% in July.
The dollar index, which measures the greenback against a basket of major currencies, was last up 0.31% at 94.601 and was on track for its best weekly percentage gain since the week early April.
With five straight days of gains against Japan’s yen, the greenback showed its strongest weekly gain versus the yen since early June. For the day, the yen was lower against the dollar at 105.60.
For the day the euro was down 0.40% at $1.1627, after hitting a roughly two-month lows.
ECB's Visco says euro's strength is a worry
A recent strengthening in the euro’s exchange rate is a worry and will warrant a reaction from the European Central Bank if it drags inflation farther away from its goal, ECB policymaker Ignazio Visco said on Sunday.
“The euro’s recent strengthening is worrying us because it generates further downward pressures on prices at a time when inflation is already low,” Visco, Italy’s central bank governor, told an event in Trento.
“The monetary policy implications are obvious: if the downward pressures jeopardise our price stability objective, we’ll have to intervene.
Reference: Reuters
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