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FOREX-Dollar edges up but headed for biggest weekly fall since 2016

Published 27/03/2020, 14:53
© Reuters.
EUR/USD
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USD/JPY
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DX
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* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds details, updates prices, new byline, changes dateline,
previous LONDON)
By Karen Brettell
NEW YORK, March 27 (Reuters) - The dollar edged higher on
Friday but remained on track for its biggest weekly decline in
four years, as trillions of dollars worth of stimulus efforts by
governments and central banks during the coronavirus epidemic
helped temper a rout in global markets.
The dollar surged in March amid a drive for dollars by
investors trying to get their hands on the world's most liquid
currency.
But big government spending pledges, including a $2.2
trillion U.S. package, and co-ordinated efforts by central banks
around the world to increase the supply of dollars have
supported a rally in other major currencies.
An unprecedented jump in U.S. jobless claims on Thursday
underscored the coronavirus's impact on the economy, further
weakening the dollar. The dollar gained 0.49% against a basket of currencies
Friday. It is on course for around a 2.57% fall for the week -
its biggest weekly decline since February 2016. =USD
Currency markets have been volatile. Last week, the dollar
index racked up its biggest weekly gain since the financial
crisis.
"What we are seeing is abating stress in the money markets.
Action by central banks has been successful so far and a
shortage of dollars has been taken of the table," said Ulrich
Leuchtmann, head of FX and commodity research at Commerzbank.
After this month's large price swings investors are likely
to be especially active in rebalancing their books for month-
and quarter-end.
The Global Foreign Exchange Committee on Thursday warned
that the coming few sessions could be volatile as market
participants execute larger than normal trades as part of this
process.
Against the yen, the dollar fell 0.71% on Friday to 108.80
yen JPY= , as Japanese investors and companies repatriated
funds before their fiscal year ends next week.
The euro fell 0.66% against the greenback to $1.0955. EUR=
"Now that the surge in demand for dollars overseas has been
met by the Fed's new improved swap lines, economic and medical
fundamentals are taking over," Marshall Gittler, head of
investment research at BDSwiss Group, said in a note on Friday.


========================================================
Currency bid prices at 9:33AM (1333 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0955 $1.1028 -0.66% -2.27% +1.1086 +1.0954
Dollar/Yen JPY= 108.8000 109.5800 -0.71% -0.06% +109.7000 +108.2500
Euro/Yen EURJPY= 119.20 120.88 -1.39% -2.26% +120.9800 +119.2100
Dollar/Swiss CHF= 0.9651 0.9630 +0.22% -0.28% +0.9655 +0.9587
Sterling/Dollar GBP= 1.2230 1.2201 +0.24% -7.76% +1.2305 +1.2134
Dollar/Canadian CAD= 1.4102 1.4016 +0.61% +8.59% +1.4153 +1.3989
Australian/Doll AUD= 0.6040 0.6063 -0.38% -13.97% +0.6126 +0.6025
ar
Euro/Swiss EURCHF= 1.0575 1.0626 -0.48% -2.55% +1.0634 +1.0577
Euro/Sterling EURGBP= 0.8957 0.9040 -0.92% +5.95% +0.9094 +0.8947
NZ NZD= 0.5933 0.5959 -0.44% -11.92% +0.6014 +0.5912
Dollar/Dollar
Dollar/Norway NOK= 10.6140 10.3900 +2.16% +20.91% +10.7256 +10.3965
Euro/Norway EURNOK= 11.6460 11.4980 +1.29% +18.38% +11.7655 +11.4797
Dollar/Sweden SEK= 10.0604 9.9676 +0.01% +7.63% +10.0628 +9.8718
Euro/Sweden EURSEK= 11.0185 11.0173 +0.01% +5.25% +11.0335 +10.9370

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