US Dollar Weakens as Markets Look Forward to US Economy Restarting
Arslan Butt • 1 min read
On Friday, the US dollar is sliding lower over encouraging reports about possible progress towards a vaccine for coronavirus under development even as the US looks to restart economic activity, helping boost the risk appetite in markets. At the time of writing, the US dollar index DXY is trading around 99.81.
According to a recent report on medical news website STAT, a clinical trial underway in Gilead has reportedly yielded promising results after most of the patients undergoing treatment showed signs of recovery and we’re discharged successfully. The company has confirmed that it will be able to offer more clarity on the trials by the end of the month, offering a possible silver lining that the world is getting closer to finding a vaccine for COVID-19.
The safe haven appeal of the US dollar further diminished after President Donald Trump outlined a plan to restart the US economy over the coming weeks. So far, the shutdowns across the US have caused 22 million Americans to lose their jobs and any hopes of restarting economic activity will help ease the pressure of the downturn.
Despite Friday’s dip, the US dollar index is set to end the week in green after two consecutive days of gains earlier in the week over escalating worries about the recession in the global economy on account of the pandemic.