The dollar stabilized today, Friday, but is heading towards its worst weekly performance since the start of the year, as investors welcome Joe Biden’s management by buying higher risk assets.
Against the Japanese currency, the dollar fell 0.3 percent this week, and fell 0.8 percent against the euro, the biggest weekly percentage decline since mid-December.
The greenback settled in the last trading at $ 1.2172 to the euro.
The new US President, Joe Biden, is seeking to borrow and spend to support the economy. The stimulus anticipation led stocks to record highs, while inflation expectations curbed real returns.
Central banks from Tokyo to Frankfurt this week kept policies unchanged, and started talking cautiously about the prospects for recovery, while the US Federal Reserve appears committed to lower interest rates for a very long time.