The US dollar at the moment recorded a slightly higher strengthening on Friday after three days of depreciation and at the same time the risky currency began to show a decline. This is driven by unfavorable economic data thus causing market players to be in a cautious phase.
The dollar index slipped to new weekly lows following confidence in stimulus packages that have prompted investors to switch to risky currencies. The $ 1.9 trillion stimulus package is believed to be able to revitalize the United States (U.S.) economy affected by the Covid-19 pandemic. At the same time it encourages investors to invest in more risky currencies.
However, the trend has stopped since this afternoon as market sentiment declined, global stocks declined from highs and the US dollar remained stable, rising more than 0.1% today. The US dollar index strengthened 0.16% against other major currencies at the 90.273 exchange rate as of 9.20 p.m.
The Aussie dollar and the kiwi showed a significant decline of 0.70% and 0.57% against the USD respectively.
On the other hand, the euro depreciated against the US dollar as economic activity in the European Zone declined significantly in January due to movement control orders. At the same time, European Central Bank (ECB) President Christine Lagarde has warned of a new surge in Covid-19 infection and the prospect of extended sanctions could affect the European Zone's economic outlook.
