- Dollar gains after days of losses this week
- Bitcoin falls, but set for 20% weekly rise
- Traders reassess pace of U.S. recovery on weak jobs data
- Euro, commodity currencies tick lower
- Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Recasts, adds new comment, updates prices, changes byline, dateline; previous LONDON)
The dollar gained on Friday after several days of losses this week, as risk appetite soured with stocks and some commodity prices lower, while investors also consolidated gains made on other currencies ahead of a long weekend in U.S. markets.
Financial markets are closed on Monday for President's Day. "We're seeing the consolidation that we expected earlier in the week," said Erik Bregar, head of FX strategy, at Exchange Bank of Canada in Toronto. "Risk sentiment is still the predominant driver of the dollar right now."
Bitcoin BTC=BTSP , meanwhile, was down 2.2% on the day at $46,909, after hitting a record high of $49,000. It was on track for gains of roughly 20% in a milestone week marked by the endorsement of major firms such as Elon Musk's Tesla TSLA.O .
The world's most popular cryptocurrency hit a record high overnight after U.S. banking group BNY Mellon BK.N said it had formed a unit to help clients hold, transfer and issue digital assets.
"There is clearly some nervousness around this level," OANDA analyst Craig Erlam told his clients, citing fears that a correction could hit soon after the $50,000 landmark is reached.
In mid-morning trading, the dollar index =USD rose 0.2% to 90.621 after subdued volumes in Asia because of the Lunar New Year.
It was, however, on track to fall 0.5% for the week - its first losing week in three - in what ING analysts described as a "consolidative mood" amid uncertainty about the pace of the U.S. economic recovery.
Weaker-than-expected weekly U.S. jobless claims data on Thursday added to concerns the dollar's previous rally had priced in too fast a rebound for the U.S. economy.
The dollar was up 0.3% against the yen at 105.04 JPY=EBS . There has been a divergence in views among traders this year over how U.S. President Joe Biden's planned $1.9 trillion fiscal stimulus package will affect the dollar.
Some see it as bolstering the currency as it should speed a U.S. recovery relative to other countries, while others reckon it would feed a global reflation narrative that should lift riskier assets at the dollar's expense.
The euro EUR=EBS fell 0.3% to $1.2091. The British pound was little changed at $1.3822 against the dollar but was steady against the euro after data showed Britain's economy suffered a record slump in 2020 but grew in the final quarter.
The Australian AUD=D3 , New Zealand NZD=D3 , and Canadian dollars CAD=D3 all fell against the greenback as risk appetite ebbed.
======================================================== Currency bid prices at 10:20 AM (1520 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 90.6230 90.4120 +0.25% 0.713% +90.7410 +90.3960 Euro/Dollar EUR=EBS $1.2094 $1.2133 -0.32% -1.01% +$1.2135 +$1.2082 Dollar/Yen JPY=D3 105.0450 104.7300 +0.30% +1.70% +105.1750 +104.7850 Euro/Yen EURJPY= 127.04 127.05 -0.01% +0.09% +127.3200 +126.9900 Dollar/Swiss CHF=EBS 0.8931 0.8898 +0.39% +0.97% +0.8940 +0.8901 Sterling/Dollar GBP=D3 $1.3818 $1.3816 +0.02% +1.15% +$1.3828 +$1.3776 Dollar/Canadian CAD=D3 1.2731 1.2703 +0.23% -0.02% +1.2762 +1.2695 Aussie/Dollar AUD=D3 $0.7736 $0.7755 -0.24% +0.57% +$0.7756 +$0.7719 Euro/Swiss EURCHF= 1.0799 1.0794 +0.05% -0.07% +1.0808 +1.0788 Euro/Sterling EURGBP= 0.8750 0.8778 -0.32% -2.09% +0.8792 +0.8745 NZ NZD=D3 $0.7194 $0.7227 -0.46% +0.18% +$0.7232 +$0.7178 Dollar/DollarDollar/Norway NOK=D3 8.4935 8.4790 +0.19% -1.07% +8.5140 +8.4770 Euro/Norway EURNOK= 10.2730 10.2840 -0.11% -1.85% +10.3140 +10.2720 Dollar/Sweden SEK= 8.3325 8.3238 -0.08% +1.67% +8.3462 +8.3177 Euro/Sweden EURSEK= 10.0790 10.0871 -0.08% +0.03% +10.1137 +10.0740 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
