US Dollar Set For Worst Weekly Performance Seen So Far in 2021

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

Arslan Butt•Friday, January 22, 2021•1 min read

US Dollar Set For Worst Weekly Performance Seen So Far in 2021

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.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.