The dollar is set to end a volatile week on Friday following an impressive rise over the past two days. The US currency maintained most of its gains against the Japanese yen and the euro. While the Chinese yuan continued to decline against the dollar on expectations that emerging markets could suffer from Donald Trumpâs protectionist approach.
The newly elected president helped calming down investorsâ worries with his victory speech. The general anticipation toward the US currency shifted from a bearish one to a relatively optimistic view following the speech, which drained demand for safe haven assets. The Japanese yen still managed to recover a small part of its losses today as investors considered the global consequences of Trumpâs presidency, which could cause unanticipated economic effects outside the USA.
The only exception to the dollarâs rise against major currencies was the British pound, which continued its way up against the US currency on Friday after it closed higher yesterday. The poundâs gains seem to be stemming from the decreasing fears of a hard Brexit from the European Union following the UKâs high court ruling last week. Trumpâs aim to renegotiate the North American Free Trade Agreement also overshadowed worries of derailed British trade connections with Europe.
EUR/USD traded at 1.0883 as of 14:42 GMT after beginning the day at 1.0887. The pairâs trading range today was between 1.0859 and 1.0917, bringing it down from 1.1082, its weekly starting point on Monday. GBP/USD traded at 1.2614 after rising to 1.2661 at 10:25 GMT, the pairâs highest level since October 6. GBP/USD opened today at 1.2545. USD/JPY touched 106.39 as the pair hovered around 106.45 for most of the day after kicking it off at 106.79. USD/CNY rose today to 6.810 after closing yesterday at 6.805
The Dollar Index, which tracks the US currency against a basket of currencies to measure its broader strength, touched 98.71 at 14:20 GMT after closing yesterday at 98.78.
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