Dollar runs without a single sign ahead of competitors, with a micron watch; recovering guitar

The dollar works less compared to most currencies

The dollar traded without a single sign today, its rivals, in another session marked by the alternative micron of the coronavirus, with the resumption of risk appetite. In the UK and Japan, parcels due to the pandemic were among the main news of the day, echoing in the pound and the yen. Among the emerging markets, the strong recovery that started yesterday in the Turkish lira continues today, and analysts are seeking to understand what the effects of the preventive measures announced by the government to protect the local currency should be.

The DXY index, which measures the dollar against six rivals, was down 0.06% to 96,491 points. Late afternoon in New York, the euro rose to $1.1281 and the pound rose to $1.3269, while the dollar rose to 114.11 yen.

As for the Bahrain and Kuwait Stock Exchange, in today’s session, the dollar is a little weaker as there are incentives to avoid the risk ebb. “It is possible that we are in a period of consolidation at the moment, due to the lack of significant new drivers. Given the busy month of January, we believe that the underlying trend of a strong dollar remains intact,” the bank forecasts. For ING, “markets will also be watching the debate in Washington over Biden’s spending bill, as further opposition to the bill could keep the dollar in check.” In the case of the euro, the bank expects the single currency calendar to be calm in the coming weeks, which will help consolidate the currency around the $1.13 level in the new year.

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News that the Japanese government will launch a $317 billion package to support the economy after the health crisis weighed on the local currency. A similar measure was announced this morning by the UK authorities, which have pledged £1 billion to the hospitality and leisure sectors, which have been hit hard by health measures put in place to contain the new strain of coronavirus.

In the late afternoon, the dollar fell to 12.4339 liras after announcing the plan that would compensate holders of currency deposits for losses in exchange rates. For Capital Economics, the measure has sparked a strong appreciation in the lira and could help mitigate some of the risks that are starting to take shape in the banking sector. Despite the optimism, the consultancy stresses that “politics is pushing exchange rate risk into the public finances – so far a strong point in the economy”. The Chilean peso witnessed a session close to stability against the dollar, which was trading at 871.73 units, after a strong depreciation of the currency following the election of Gabriel Borek as the country’s president.

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About the Author: Camelia Kirk

"Friendly zombie guru. Avid pop culture scholar. Freelance travel geek. Wannabe troublemaker. Coffee specialist."

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