LONDON (Reuters) – The dollar rose on Friday and headed towards its biggest weekly gain since early April as the euro fell after a European Union meeting on Thursday to establish a trillion euro emergency fund failed to calm investor fears.
Although European Union leaders agreed to build a bumper to help recover from the Corona virus pandemic, French President Emmanuel Macron said that disputes continued between EU governments on whether the fund should transfer grant funds or simply provide loans..
The euro generally fell on Friday, falling 0.4 percent against the dollar to a one-month low of $ 1.07275 and to a three-year low against the yen at 115.55 yen.
The losses of the single currency came in light of the rise in the returns of Italian bonds by between five and nine basis points in various periods.
With Italy and Spain much more affected than Germany by the crisis, old hostilities have surfaced across the bloc, which faces a drop in economic output of up to 15 percent, according to the European Central Bank..The euro losses pushed the US currency towards the biggest weekly gain since early April. Against a basket of competing currencies, the dollar rose 0.2 percent to 100.72. On a weekly basis, the dollar rose more than 1 percent.
The Australian and New Zealand dollars fell about 0.2 percent, with the New Zealand dollar holding below 60 cents at $ 0.5996 and the Australian dollar at $ 0.6359, below a resistance level of about 64 cents to the dollar.