Dollar suffers losses after US jobs data and sterling rises | latest news

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The US dollar stopped breathing after it recorded its biggest loss in ten days as US labor market data disappointing expectations negatively affected optimism about a rapid recovery from the Covid-19 pandemic.

The dollar continued to breach its traditional role as a safe-haven currency, falling in line with the performance of US stocks overnight after an unexpected increase in weekly jobless claims dampened economic outlook.

And the pound sterling recorded its highest level in nearly three years, which it reached during the night, when it rose at the most rapid pace in more than a month, in light of a strong vaccination campaign carried out by Britain.

The dollar index was little changed at 90.561 in the Asian session, after dropping 0.4% overnight, snapping a two-session gain. And in the week, the index is now back somewhat at par.

A series of weak data is pressing to act on the dollar even as other indicators show its strength, and at a time when efforts by US President Joe Biden to mitigate the repercussions of the pandemic take shape, including a proposed spending package of $ 1.9 trillion.

The sterling nearly settled at $ 1.3965 on Friday after jumping 0.8 percent in the previous session, when it rose to its high of $ 1.3986 for the first time since April 2018.

The dollar reached 105.555 yen, to almost stabilize after two days of retreating from a five-month high of 106.225, which it reached on Wednesday.

Many analysts expect the dollar to decline throughout the year as it normally does during times of global economic recovery, but that may take some time.

In cryptocurrencies, bitcoin traded at $ 51,335.71, to consolidate the currency for the second day after reaching a record high of $ 52,640 on Wednesday in a rally fueled by the support of Tesla and others. The cryptocurrency has risen nearly 78 percent since the start of the year, after more than quadrupling it last year.

The smaller competition, Ethereum, rose to a record high of $ 1,951.89 on Friday, just above the previous day’s high before trading at $ 1,909.41. The currency has risen about 162 percent since the beginning of this year.

On Thursday, chip maker Nvidia announced a new processor specifically designed for Ethereum mining.





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