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The Dollar Shows The Strongest Growth Against The Euro Since The Beginning Of April

The Dollar Shows The Strongest Growth Against The Euro Since The Beginning Of April

The dollar strengthened against the Euro on Friday evening; at the end of the week, the European currency may show the strongest decline against the US since the beginning of April, according to trading data.

As of 18.10 Moscow time, the Eurodollar exchange rate was falling to 1.1614 dollars from the previous closing level of 1.1672 dollars per Euro. The dollar-yen exchange rate rose to 105.66 yen from 105.4 yen at the previous close. The dollar index (the dollar exchange rate against a basket of currencies of six countries — the main trading partners of the United States) rose by 0.36% to 94.69 points.

Continuing risks around the coronavirus pandemic and uncertainty about the global economic Outlook support the dollar as a reliable asset. As a result, the Euro may fall by almost 2% against the dollar at the end of the week. The last time such a large – scale decline was recorded in the week from March 30 to April 3, when the Euro fell against the dollar by 3%.

Pressure on the European currency is also exerted by the continuation of the pandemic in the region. So, the UK and France this week recorded a record daily increase in COVID-19 infections.

"The dollar is performing well in terms of risk aversion and low asset prices — not to the extent that we saw in March-April, but enough to pay attention to it," Mizuho analyst Neil Jones told Reuters.

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