Dollar positive, may post better week since early April amid risk aversion

Dollar positive, may post better week since early April amid risk aversion

Dollar positive, may post better week since early April amid risk aversion

LONDON (Reuters) – The dollar continued to rally on Friday and may post its best week since early April amid a sell-off in risky currencies amid fears of rising coronavirus cases in Europe and uncertainty around the upcoming US elections.

The spread of the coronavirus in Europe has accelerated this week, forcing the UK to tighten restrictions again to combat the pandemic. European Union health officials have warned of the risk of a “double epidemic” of COVID-19 and influenza, urging governments to remain vigilant.

The dollar index against a basket of major currencies rose 0.19% to 94.531 by 15:46 Moscow time.

“The dollar is performing well in a risk-averse environment and lower asset prices – not to the extent we saw in March / April, but certainly enough to notice,” said Neil Jones, senior director and head sales of currencies in Mizuho.

“This relationship continues to manifest itself, it looks quite reliable,” he said.

Jones said the mechanics behind dollar appreciation could be a combination of shorting and investing in assets and transferring the proceeds to dollar accounts.

The Australian dollar fell 0.21% to $ 0.703 and may slow 3.5% over the week.

Kiwi rose 0.06% to $ 0.6554, but may lose 3% over the week.

The Japanese yen fell 0.09% against the dollar to hit 105.5 yen.

The euro slipped 0.29% to $ 1.164.

The Norwegian krone shed 0.82% to 1.3372 per dollar, having previously hit a 3-month low, and against the euro, it declined 0.5% to 0.0585.

The safe Swiss franc gained 0.14% against the euro at 1.0798.

(Elizabeth Howcroft, translated by Elizaveta Zhuravleva. Editor Marina Bobrova)

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