- Dollar up sharply vs Swiss franc
- Dollar index hits one-week high
- Focus on key events next week: Brexit, central bank meetings
- Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds comment, updates prices)
The U.S. dollar rose against the safe-haven Japanese yen and Swiss franc on Friday as stocks on Wall Street rallied from their worst one-day performance in three months, while the euro dropped against the greenback, erasing early gains.
The yen fell against the dollar for the first time in five sessions, while the Swiss franc declined, as Wall Street rallied to claw back some of the sharp losses suffered in the prior session.
Going into next week, investors are bracing for a number of key events, including discussions on the European Union recovery fund, Brexit negotiations, Bank of England and Swedish National Bank meetings. Federal Reserve Chair Jerome Powell's semi-annual testimony to the Senate banking committee is also scheduled next week.
"There has been a paring back of bearish bets on the dollar," said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.
"The Fed catalyzed that with its cautious outlook this week and now the market is looking ahead to next week where it will be really full of Fed speak, especially the Fed chairman testifying on Capitol Hill so Fed caution back at the forefront, that has helped the dollar stabilize."
Hopes of a post-COVID global recovery, the easing of U.S.-China trade tensions and the prospect of capped long-term yields in the United States had weighed on the dollar, pushing it lower against most major currencies, before it strengthened.
In afternoon trading, the dollar rose 0.6% against the yen to 107.455 yen JPY=EBS . That said, the dollar still posted its worst weekly performance against the yen since late March.
Against the Swiss franc, the dollar surged 1.2% to 0.9551 franc CHF=EBS .
The euro fell 0.6% to $1.1228 EUR=EBS , sliding from $1.1422, the three-month high it reached on Wednesday.
The dollar index, meanwhile, climbed 0.5% to 97.33 =USD , after earlier hitting a one-week high.
The British pound weakened on data showing Britain's economy shrank by a record 20.4% in April from March as the country spent the month in a tight coronavirus lockdown. Investors saw the number as likely the bottom of the crash before what is expected to be a long and slow recovery.
Sterling was last down 0.9% at $1.2487 GBP=D3 and was slightly lower versus the euro. In the afternoon session, the euro rose 0.2% to 89.92 pence EURGBP=D3 .
The dollar showed little reaction to U.S. economic data on import prices and consumer sentiment released on Friday.
======================================================== Currency bid prices at 3:01PM (1901 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1232 $1.1297 -0.58% +0.20% +1.1340 +1.1213 Dollar/Yen JPY= 107.4300 106.8500 +0.54% -1.31% +107.5400 +106.6000 Euro/Yen EURJPY= 120.69 120.73 -0.03% -1.03% +121.8000 +120.2700 Dollar/Swiss CHF= 0.9545 0.9440 +1.11% -1.37% +0.9553 +0.9437 Sterling/Dollar GBP= 1.2490 1.2600 -0.87% -5.80% +1.2653 +1.2475 Dollar/Canadian CAD= 1.3609 1.3624 -0.11% +4.80% +1.3666 +1.3527 Australian/Doll AUD= 0.6847 0.6854 -0.10% -2.48% +0.6911 +0.6800 arEuro/Swiss EURCHF= 1.0722 1.0666 +0.53% -1.20% +1.0727 +1.0656 Euro/Sterling EURGBP= 0.8991 0.8964 +0.30% +6.35% +0.8998 +0.8948 NZ NZD= 0.6430 0.6430 +0.00% -4.54% +0.6477 +0.6395 Dollar/DollarDollar/Norway NOK= 9.6752 9.6200 +0.57% +10.22% +9.7274 +9.5103 Euro/Norway EURNOK= 10.8690 10.8700 -0.01% +10.48% +10.9335 +10.7814 Dollar/Sweden SEK= 9.3651 9.3179 -0.06% +0.19% +9.3922 +9.2350 Euro/Sweden EURSEK= 10.5229 10.5296 -0.06% +0.51% +10.5555 +10.4690
