Early trade in New York: Dollar set for worst week in a month

NEW YORK: The dollar fell to a fresh 2-1/2-year low on Friday, on track for its worst week in a month, as investors shrugged off a US non-farm payrolls report that badly missed expectations in November and focused on a flurry of positive vaccine news.

Upbeat announcements on vaccinations have helped drive a rally in riskier currencies, while actions taken by the Federal Reserve have weakened the greenback. The euro and Swiss franc, in contrast, were headed for their best week against the dollar in a month.

The single currency touched a new 2-1/2-year high, while the Swiss franc rose to its highest in nearly six years. In mid-morning trading, the dollar index fell 0.2% to 90.513, after earlier falling to 90.471, the lowest in more than 2-1/2 years. On the week, the index was down 1.4%, its largest week loss since early November.

The single currency hit a two-and-a-half-year high of $1.2177, just above the previous day's benchmark and was last up 0.1% at $1.2161. Against the Swiss franc, the dollar continued its descent, dropping to a nearly six-year low of 0.8886 franc. The greenback was last down 0.2% at 0.8897.

The dollar though gained 0.2% against the yen at 104.02 yen. Sterling, meanwhile, rose 0.5% against the dollar to $1.3514, helped by the greenback's broad weakness. It hit a 2-1/2-year peak versus the greenback on expectations that Britain will be able to clinch a post-Brexit trade deal with the European Union.