NEW YORK: The safe-haven yen rose to more than four-month highs on Friday, while the dollar dropped to a nearly two-year low, as risk appetite diminished amid a slew of worries ranging from the delay in the stimulus package bill, the spike in virus cases, and US-China tensions.
The dollar was on track to post its worst weekly performance in more than four months against a basket of currencies. Against a surging euro, the struggling dollar was on pace to post its largest weekly percentage loss since early June.
In midday trading, the dollar fell 1% against the yen to 105.81 yen, having dropped to 105.76 yen, the lowest since mid-March. Against a basket of currencies, the dollar slid 0.4% to 94.42. Earlier in the session, it plunged to 94.402, a fresh 22-month low.
Analysts said US-China tensions also undermined the dollar. China's foreign ministry told the US embassy early on Friday to close its consulate in the city of Chengdu, after Washington ordered the closure of the Chinese consulate in Houston.
The euro, meanwhile, hit a fresh 22-month high against the dollar and was last up 0.3% at $1.1632. The Chinese yuan, a barometer of China-US tensions, looked set for its worst week in three months. It was last down 0.2% at 7.0255 per dollar in the offshore market.
Comments
Comments are closed for this article.