- Dollar index rises, yen falls against dollar
- Aussie and Kiwi decline against greenback
- Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Updates prices, adds commentary, changes byline, previous dateline London)
The dollar extended its gains on Friday and was on track for its biggest weekly gain since early April, as investors sought safety amid a slowing economic recovery, rising coronavirus infections in Europe and uncertainty surrounding the upcoming U.S. elections.
While orders for key U.S.-made capital goods increased more than expected in August, orders for durable goods - ranging from toasters to aircraft that are meant to last three years or more - rose 0.4% in August after jumping 11.7% in July.
While the dollar fell slightly on Thursday, for the first session in five, as equities rose on hopes for U.S. stimulus, the greenback's rally resumed on Friday as worries resurfaced.
"Yesterday was a calmer more positive sentiment ... then this morning's durable goods show that the pace of growth in the United States is very uneven," said Juan Perez, senior currency trader and strategist at Tempus Inc.
Along with weaker U.S. and overseas economic data and expectations, Perez said dollar demand was also boosted by Washington's failure to create a stimulus package and concerns ahead of the U.S. election.
Top Republicans on Thursday repudiated President Donald Trump's refusal to commit to a peaceful transfer of power after Trump, also a Republican, said Wednesday that he expects the election result to end up being settled by the Supreme Court.
"In times like that when the chaos and havoc and blurriness of the future is so intense and so dense, that's when the dollar is going to rise once again," said Perez. "Markets are always going to be afraid when a strong government does not give clarity about continuance, about stability."
Currency moves were closely correlated with share indexes, which have fallen sharply this week as markets re-evaluated the shape of a possible recovery from the pandemic.
The dollar index, which measures the greenback against a basket of major currencies, was last up 0.35% at 94.642 =USD and was on track for its best weekly percentage gain since April 5th.
"The dollar is doing well under risk-aversion conditions and lower asset prices – not to the same extent that we saw in March/April but certainly enough to take notice," said Neil Jones, senior director and head of FX sales at Mizuho.
The euro was down 0.4% at $1.1625 , close to two-month lows hit on Thursday EUR=EBS .
Riskier currencies fell, with Australian dollar lower 0.3% on the day and set to end the week down around 3.6%, in its biggest weekly decline since March AUD=D3 . The New Zealand dollar was down 0.15% against the greenback NZD= .
The yen was lower against the dollar at 105.65 JPY=EBS .
======================================================== Currency bid prices at 10:53AM (1453 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1625 $1.1672 -0.40% +3.70% +1.1684 +1.1615 Dollar/Yen JPY= 105.6500 105.4000 +0.24% -2.94% +105.6900 +105.2500 Euro/Yen EURJPY= 122.83 123.00 -0.14% +0.72% +123.1500 +122.6200 Dollar/Swiss CHF= 0.9283 0.9266 +0.18% -4.08% +0.9295 +0.9251 Sterling/Dollar GBP= 1.2708 1.2749 -0.32% -4.17% +1.2804 +1.2690 Dollar/Canadian CAD= 1.3397 1.3362 +0.26% +3.16% +1.3405 +1.3338 Australian/Doll AUD= 0.7023 0.7045 -0.31% +0.03% +0.7086 +0.7007 arEuro/Swiss EURCHF= 1.0793 1.0813 -0.18% -0.54% +1.0821 +1.0793 Euro/Sterling EURGBP= 0.9147 0.9149 -0.02% +8.20% +0.9168 +0.9120 NZ NZD= 0.6540 0.6550 -0.15% -2.91% +0.6591 +0.6529 Dollar/DollarDollar/Norway NOK= 9.5765 9.4967 +0.84% +9.09% +9.6151 +9.4833 Euro/Norway EURNOK= 11.1329 11.0858 +0.42% +13.16% +11.1858 +11.0679 Dollar/Sweden SEK= 9.1203 9.0828 -0.15% -2.42% +9.1645 +9.0858 Euro/Sweden EURSEK= 10.6038 10.6195 -0.15% +1.29% +10.6635 +10.6070 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ USD https://tmsnrt.rs/33WMCUp^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
