29/04/2021
The dollar sat near its lowest level in nine weeks on Thursday, as the US Federal Reserve chief’s insistence on easing expectations and bold spending plans from the White House gave the green light to a contraction in global trade.
President Joe Biden's push for another $ 1.8 trillion spending package is also raising the prospect of rising budget deficits and trade deficits in the United States, a sore point along the line for the dollar.
The euro was the biggest seizer of the opportunity, reaching its highest level since late February at $ 1.2149, before settling at 1.2134. Breaking the resistance at 1.2114 opens the way to target levels between $ 1.2196 and $ 1.2242.
The Fed's easing tendency contrasts clearly with the Central Bank of Canada that has already begun to moderate its asset purchases, pushing the dollar to fall to a three-year low against the Canadian dollar at CAD $ 1.2287.
Another noticeable decline came against the Norwegian krone, as the dollar hit its lowest level since October 2018 at 8.1460 kroner.
The krone increased due to the rise in oil prices, as the global economic recovery supported demand for commodities, a trend that also benefits the Australian and New Zealand dollars.
The dollar also lost much of the week’s gains against the yen, to return to 108.55 from Wednesday’s highs at 109.07. A holiday in Japan put it in a limited range in Asian trading.
Against a basket of currencies, the dollar was near a nine-week low of 90.543, being a long way from its peak of 93.439, which it reached at the end of March.
