Dollar Stays Firm Against Major Rivals
The U.S. dollar exhibited strength against most of its rivals on
Thursday as reports showing a surge in new coronavirus cases in
several states of America and many other countries dimmed risk
appetite and supported the greenback's uptick.
Markets were also reacting to reports about easing of bank
restrictions on investment activities, the data on U.S. durable
goods orders, the ECB minutes and economic data from Europe.
According to reports, the Federal Deposit Insurance Commission
officials said they would loosen restrictions from the Volcker
Rule, a post-financial crisis law designed to stop banks - which
received federal and taxpayer bailouts - from engaging in risky
The report in Bloomberg also says that regulators will ease
margin requirement for swaps trades that could free up an estimated
$40 billion for Wall Street banks.
The dollar index, which rose to 97.60 early on in the session,
later dropped to 97.37 but was still holding in positive territory,
gaining about 0.22%.
Against the Euro, the dollar strengthened to $1.1223, from
Wednesday's $1.1251. Minutes from the European Central Bank's June
meeting showed that policymakers agreed that purchases of
government bonds under the pandemic emergency purchase programme
and the asset purchase programme were an effective tool for
delivering the price stability goal in the current environment.
ECB policymakers broadly agreed to increase the size of the PEPP
by €600 billion and extend the horizon for net purchases under the
scheme to at least the end of June 2021, observing that expanding
the size would help support the smooth transmission across the euro
area, it added.
The Pound Sterling was little changed with a unit of sterling
fetching $1.2426, compared with $1.2421 last evening. The dollar
was earlier down at 1.2465 a sterling, but subsequently
strengthened to 1.2391 before losing ground again.
Against the Yen, the dollar was slightly up, fetching 107.13
yen, compared with 107.04 yen Wednesday evening.
The Aussie was gaining against the dollar with the pair trading
at 0.6888 as against previous close of 0.6869.
The Swiss franc was last seen at 0.9481 a dollar, not much
changed from previous close of 0.9479. Earlier in the day, the
franc slipped to a low of 0.9508.
The Canadian Loonie recovered from mid-session lows after oil
prices moved higher. The loonie was quoting at 1.3641 against the
dollar a little while ago, recovering from a low of 1.3670.
Data from the Labor Department showed first-time claims for U.S.
unemployment benefits dropped to 1.480 million, a decrease of
60,000 from the previous week's revised level of 1.540 million.
Economists had expected jobless claims to tumble to 1.300 million
from the 1.508 million originally reported for the previous
A report released by the Commerce Department on Thursday showed
the slump in U.S. economic activity in the first quarter was
unrevised from the previous estimate. The report said real gross
domestic product tumbled by 5% in the first quarter, unchanged from
the estimate provided last month and in line with expectations.
Another report from the Commerce Department said new orders for
U.S. manufactured durable goods spiked by 15.8% in May after
plunging by a revised 18.1% in April. Economists had expected
durable goods orders to surge up by 10.9% compared to the 17.7%
nosedive that had been reported for the previous month.
In coronavirus news, the U.S. broke its record for the highest
coronavirus cases recorded in a single day, with 36,358 new
positives reported on Wednesday, according to a tally by NBC
With some southern and western states reporting record number of
coronavirus cases, New York, New Jersey and Connecticut have asked
visitors from nine states with high infection rates to quarantine
for 14 days.
The International Monetary Fund's report on Wednesday cut its
global growth forecast for this year and next and said the pandemic
was causing wider and deeper damage to economic activity than first
The IMF projected the global economy to shrink by 4.9% in 2020,
compared to a 3% contraction expected earlier.
Euro vs Yen (FX:EURJPY)
Gráfica de Divisa
De Jul 2020 a Ago 2020
Euro vs Yen (FX:EURJPY)
Gráfica de Divisa
De Ago 2019 a Ago 2020