Dollar steadies after week of selling, investors eye Brexit deal, coronavirus relief
The dollar stabilized on Friday after a week of selling that has pushed it below major support levels. Its decline prompted short sellers to ride the sentiment and make quick profits.
The dollar rose 0.3% to 103.39 against the Japanese yen on Friday and gained by the same margin against the Aussie and the kiwi. It climbed 0.2% on the euro.
Still, the greenback is down 0.6% against the yen for the week. It also suffered seven straight weeks of falls against the Aussie and the kiwi, and a 1.1% drop against the euro.
The pound is set for a 2.4% weekly gain on the dollar, boosted by hopes for a breakthrough in the Brexit trade deal before the end of the year.
The dollar index gained 0.15% to 89.986, just above the 2 ½-year low of 89.723 hit on Thursday. It is down 1% for the week.
Traders are focusing on the progress on a U.S. coronavirus relief aid and Brexit trade talks to assess the market sentiment for the last weeks of the year.