The dollar suffers a weekly loss as the global economic-recovery dissipates

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The dollar settled in a cautious Asian session on Friday, but it was heading towards its worst weekly performance since the start of the year as investors welcome Joe Biden’s management by buying higher risk assets.

Against the Japanese currency, the dollar fell 0.3 percent this week and fell 0.8 percent against the euro, the biggest weekly percentage decline since mid-December.

The dollar settled in the last session at $ 1.2172 to the euro and bought 103.54 yen.

It advanced slightly against the Australian and New Zealand dollars, but not enough to miss the weekly gains made by the two currencies, which amounted to 0.6 percent for the Australian dollar and 0.9 percent for the New Zealand dollar.

Biden, whose Democratic Party controls the US Congress, is seeking to borrow and spend to support the economy.

The stimulus anticipation led stocks to record highs, while inflation expectations curbed real returns.

Central banks from Tokyo to Frankfurt this week kept policies unchanged and started talking cautiously about the prospects for a recovery, while the US Federal Reserve appears committed to lower interest rates for a very long time.

The Canadian dollar fell 0.2 percent to 1.2671 to the US dollar with the drop in oil prices today, but it is up 0.5 percent this week and reached its highest level in nearly three years on Thursday after the Bank of Canada surprised some dealers by not cutting interest rates.

The pound fell 0.2 percent from its two-and-a-half-year peak on Thursday, to settle at $ 1.3707.

The British currency is receiving support from the hope that vaccines against the Coronavirus will boost the economic recovery later in the year.

The dollar index settled on Friday at 90.110 and fell 0.7 percent for the week.

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