US Dollar Set For Worst Weekly Performance Seen So Far in 2021
Arslan Butt • 1 min read
The US dollar continues to trade bearish in early trading on Friday and is set to post its worst weekly performance seen so far this year as markets cheer the new Biden administration and hope for faster economic recovery. At the time of writing, the US dollar index DXY is trading around 90.24.
Biden swearing in as the 46th US President has boosted the market sentiment and weakened the safe haven appeal of the US dollar in recent sessions. Further weakness in the reserve currency has also been driven by rising expectations for more stimulus measures being rolled out by President Biden to help the US economy overcome the damage driven by the coronavirus crisis.
So far this week, the US dollar has lost around 0.8% of its value against its major rivals, including the Euro. The bearishness in the greenback and the improvement in the risk appetite of global markets has helped commodity currencies AUD and NZD strengthen by as much as 0.8% and over 1% respectively so far this week.
A bull run in stock markets has also served to weaken investors’ demand for the safer dollar. Analysts expect the greenback to continue trading weak as markets focus on the optimism surrounding economic recovery in the aftermath of the pandemic, especially as vaccine rollout gets underway in more countries worldwide.