US Dollar Weakens, Capping Tough Week

The US dollar weakens 0.5% against the euro and 0.8% against the yen. “The US dollar’s continued decline was the focal point of global foreign exchange markets this week,” Cambridge Global Payments says.

The dollar shrank 1.9% against the euro this week and the ICE Dollar Index fell 1.6%, “with the common currency boosted by the successful signing of a 750 billion euro stimulus package currency analysts said would enhance the appeal of the euro and euro-denominated assets.” The firm also says the dollar was hurt by escalating tensions between the US and China that resulted in consulate closures, the lack of a Congressional deal to extend emergency stimulus and rising coronavirus cases in many parts of the US.