IN WORLD markets, the value of the dollar against a basket of currencies rose last week, for the second time in a row, as investors' risk appetite subsided, as did optimism about the global economy's rapid recovery from the corona crisis.
The dollar index, which shows the movement of the US against the other six most important world currencies, strengthened 0.7 percent last week, to 90.77 points, and approached the highest level in four weeks.
The dollar depreciated against the Japanese currency by 0.1 percent to 103.80 yen.
But the U.S. currency strengthened against the European, so the price of the euro slipped 1.1 percent, to $ 1.2080.
According to the basket of currencies, the dollar strengthened for the second week in a row, at the highest rate since November last year.
Risky currencies weakened
Risky currencies, on the other hand, weakened because investors were discouraged by uncertainties on many issues, so they were less prone to risk.
Investors were concerned, among other things, by news of the continued spread of coronavirus around the world, which is why some countries, such as France and Germany, have announced the extension of restrictive measures.
In China, meanwhile, more than 28 million people are in the lockdown, and it was announced on Friday that the largest number of new cases of infection in the last 10 months was recorded in the last 24 hours.
“After optimism about vaccine development, it seems to me that we are now living in the reality of a very slow process of vaccinating people, which is firmly pressuring business activities,” said Juan Perez, a currency trader at Tempus.
In the focus of investors Biden's proposal to stimulate the economy
Investors also focused last week on proposing new incentives to US President-elect Joe Biden.
The value of the package is about $ 1.9 trillion, which includes $ 415 billion to combat covid-19, about $ 440 billion in aid to small businesses, and $ 1,000 billion in direct aid to households.
But it has not had a major impact on markets because it is uncertain whether Democrats will easily be able to push through that proposal in the Senate, although they have gained an advantage in that House of Congress as well, analysts said.
The recovery of the dollar briefly slowed down after statements by US Federal Reserve Chairman Jerome Powell that an increase in interest rates could not be expected so soon and that the Fed would continue to buy bonds.
Investors, on the other hand, were worried about new tensions in U.S.-China relations after the outgoing presidential administration of Donald Trump intensified tensions by imposing new sanctions on Chinese companies and officials.
English (US)