Dollar at peak in more than 9 months

The safe US dollar on Friday updated its peak of nine and a half months against major currencies amid fears that the delta strain could delay the recovery of the global economy. U.S. currency support has also been fueled by expectations that the Federal Reserve could begin cutting incentives this year, even as the number of new COVID-19 cases in the United States has risen. The dollar index to the basket of six main currencies by 09:34 Moscow time was stable at 93.565, having previously risen to the mark for the first time since the beginning of November 93,597. Over the week, it can grow by 1.08% – the maximum weekly growth in two months.

“Markets are worried about the spread of the delta strain and the deteriorating prospects for a global recovery, while the Fed continues to move toward curtailing incentives,” Westpac strategists said in an analytical report. According to them, this put the dollar index “in an aggressive position, and it conquers new highs.” The index may exceed 94 points later this year, when the curtailment of economic support measures will become more real, analysts said. “Australian” fell by 0.32% to $0.7123. Over the week, it dropped 3.14% and may show the worst weekly result since September 2020.

Authorities on Friday extended the Sydney lockdown and imposed curfews in a number of areas. The Kiwis declined 0.35% to $0.6818, having previously hit a low of nine months at $0.680. Over the week, it may decline by 2.85% – also the worst result since September. The New Zealand government also extended the lockdown, which earlier this week did not give the country’s central bank raise rates.

The Canadian dollar fell 0.31% to $1.2866, having previously updated at least 6 months at 1.2832 per US dollar due to falling oil prices. The yen was slow at 109.67 per dollar, held in the middle of the trading range of the past six weeks.

The euro rose 0.07% to $1.1682, staying close to the nine-and-a-half-month low of $1.16655 reached the day before. For the week, the single currency may fall by 0.91% – the maximum from mid-June. Sterling fell 0.15% to $1.3618, having previously updated the monthly a minimum of $1.3619. For a week, it can fall in price by 1.71% – for a maximum of two months. The yuan in the offshore market fell by 0.11% to 6.5062, during the session reaching a minimum of three weeks at 6.5104.

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