Dollar steadies below two-month highs, risk currencies recover losses
The dollar steadied below its recent two-month highs on Friday and risk currencies recovered weekly losses, while equity markets were boosted by hopes that U.S. fiscal stimulus talks would resume.
The dollar is on course for its best week since early April, supported by risk aversion that urged investors to quit their sell positions amid bleak outlook on global economic recovery caused by the coronavirus.
Stocks climbed after a late tech-driven rally on Wall Street, with sentiment lifted by a key lawmaker saying that Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package.
The kiwi climbed 0.6% to 0.6584 on the dollar, but down 2.6% for the week. The Aussie rose 0.5% to $0.7086, but on course for its worst week against the dollar.
The dollar index was down 0.1% to 94.246 but up 1.3% this week, its biggest weekly gain in six months.
Britain announced new restrictions on Tuesday, while France reported that patients in intensive care due to COVID-19 hit 1,000 for the first time since early June.
The euro climbed 0.1% to $1.1676 on Friday but is down 1.4% for the week. The yen slightly rose to 105.385 against the dollar, while the Swiss franc climbed 0.1% on the euro.