Dollar Pares Weekly Gain as Risk Sentiment Improves
A gauge of dollar strength fell Friday, paring its first weekly advance in four, as the US currency retreated against most major counterparts as stocks rallied amid a pickup in risk-on sentiment. The yen steadied ahead of a pivotal lower-house election in Japan on Sunday.
The Bloomberg Dollar Spot Index falls 0.4%, leaving it up 0.2% on the week.
“I think the dollar gains this week were largely technical in nature as the powerful downtrend seen in late Jan stalled with the nomination of Warsh,” said Marc Chandler, chief market strategist at Bannockburn Global.
Yields across the Treasury curve climb with 10-year tenor up three basis points to 4.21%, and stocks rose, sending the S&P 500 up nearly 2%.
The dollar traded near session lows after the University of Michigan consumer survey.
Currencies sensitive to moves in commodity prices lead gains after gold rallied, while gains in stocks upended risk-off positioning
AUD/USD surges 1.3% to 0.7016. USD/NOK down 1.3% to 9.6785, yet still up 0.3% this week.
NZD/USD jumps 1.2% to 0.6019. USD/JPY is little changed at 157.11 as investors mull outcomes to Japan’s weekend election in view of hawkish signaling from a BOJ board member
EUR/USD up 0.4% to 1.182. GBP/USD gains 0.7% to 1.3619.
Source: Bloomberg.com
