Dollar on track for biggest weekly fall in a decade

Dollar on track for biggest weekly fall in a decade

27 Mar 2020 03:57 PM

The dollar was on track for its biggest weekly decline in more than a decade on Friday, as trillions of dollars worth of stimulus efforts by governments and central banks helped temper a rout in global markets triggered by the coronavirus pandemic.

The dollar had been riding high in March amid a drive for dollars by investors trying to get their hands on the world's most liquid currency, and one considered a safe haven.

But big government spending pledges, including a $2.2 trillion U.S. package, and co-ordinated efforts by central banks around the world to increase the supply of dollars have supported a rally in other major currencies.

The dollar consolidated losses on Friday, edging up 0.2% on the day against major currencies, but was still on course for a near 3% fall for the week - its biggest decline since May 2009.

Against the yen, the dollar fell 0.7% on Friday to 108.855 yen as Japanese investors and companies repatriated funds before their fiscal year ends next week. The euro ticked down 0.2% to $1.10080 but was still on track for an almost 3% gain over the dollar this week.