On: Saturday – May 16, 2020
(Reuters) – The dollar fell from a three-week high on Friday, but appeared to be headed for a modest weekly gain as rising tension between the United States and China and concerns about a second wave of Coronavirus infections raised investor concern. With hopes of a rapid global recovery from the pandemic ebbing, the heavily influenced Australian dollar is poised to end five weeks of gains, down 1 percent, marking its first weekly loss since early April. The Aussie weakened in the Asian session to hit $ 0.6462, just below the average range it stayed in for a month. The New Zealand dollar rose from a three-week low of $ 0.5958, which hit it yesterday, but was negatively affected by talk of negative interest rates next year. He struggled to get past the 60 cents level and settled at $ 0.5996. The yen held steady at $ 107.18, but declined over the course of the week as Federal Reserve officials (the US central bank) spoke about the possibility of negative interest rates, which also supports the US currency. The dollar is about half a percent higher against the yen this week and half a percent against a basket of currencies. The gradual reopening of global economies coincided with the clarity of how the pandemic damaged supply chains, labor markets and global demand. Today’s data showed that China’s industrial production in April exceeded expectations, but consumption was stuck in a recession.