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FOREX-Dollar posts biggest weekly fall since 2009

The dollar posted its biggest
weekly decline in more than a decade on Friday, as trillions of
dollars worth of stimulus efforts by governments and central
banks helped temper a rout in global markets driven by the
coronavirus pandemic.
The dollar surged in March as tumbling stock and debt
markets caused a scramble for the world’s most liquid currency.
But big government spending pledges and coordinated efforts
by central banks around the world to increase the supply of
dollars have supported a rally in other major currencies.
The U.S. House of Representatives on Friday approved a $2.2
trillion aid package – the largest in American history – to help
people and businesses cope with the economic downturn inflicted
by the coronavirus outbreak.
The dollar dipped 0.87% against a basket of currencies
Friday to 98.41. It fell 3.90% this week – its biggest
weekly decline since March 2009.
The dollar index last week had racked up its biggest weekly
gain since the financial crisis.
“What we are seeing is abating stress in the money markets.
Action by central banks has been successful so far and a
shortage of dollars has been taken off the table,” said Ulrich
Leuchtmann, head of FX and commodity research at Commerzbank.
After this month’s large price swings, investors were likely
to be especially active rebalancing their books for month- and
The Global Foreign Exchange Committee on Thursday warned the
coming few sessions could be volatile as market participants
execute larger than normal trades as part of this process.
Against the yen, the dollar fell 1.56% on Friday to 107.87
yen, as Japanese investors and companies repatriated
funds before their fiscal year ends next week.
The euro gained 0.83% against the greenback to $1.1119.

Sterling jumped 2.07% to $1.2454 and the Australian
dollar rose 1.78% to $0.6171.
Speculators increased their net short dollar position in the
latest week to $8.88 billion, from $8.27 billion the previous
week, according to calculations by Reuters and U.S. Commodity
Futures Trading Commission data released on Friday.
“Now that the surge in demand for dollars overseas has been
met by the Fed’s new improved swap lines, economic and medical
fundamentals are taking over,” Marshall Gittler, head of
investment research at BDSwiss Group, said in a note on Friday.

Currency bid prices at 4:00PM (2000 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Euro/Dollar EUR= $1.1119 $1.1028 +0.83% -0.81% +1.1129 +1.0954
Dollar/Yen JPY= 107.8700 109.5800 -1.56% -0.91% +109.7000 +107.7700
Euro/Yen EURJPY= 119.95 120.88 -0.77% -1.64% +120.9800 +118.8200
Dollar/Swiss CHF= 0.9519 0.9630 -1.15% -1.64% +0.9655 +0.9521
Sterling/Dollar GBP= 1.2454 1.2201 +2.07% -6.07% +1.2485 +1.2134
Dollar/Canadian CAD= 1.3980 1.4016 -0.26% +7.67% +1.4153 +1.3922
Australian/Doll AUD= 0.6171 0.6063 +1.78% -12.11% +0.6200 +0.6024
Euro/Swiss EURCHF= 1.0587 1.0626 -0.37% -2.44% +1.0634 +1.0564
Euro/Sterling EURGBP= 0.8926 0.9040 -1.26% +5.58% +0.9094 +0.8907
NZ NZD= 0.6047 0.5959 +1.48% -10.23% +0.6069 +0.5912
Dollar/Norway NOK= 10.4420 10.3900 +0.50% +18.95% +10.7256 +10.3965
Euro/Norway EURNOK= 11.5790 11.4980 +0.70% +17.70% +11.7655 +11.4797
Dollar/Sweden SEK= 9.9063 9.9676 +0.06% +5.98% +10.0744 +9.8701
Euro/Sweden EURSEK= 11.0235 11.0173 +0.06% +5.29% +11.0463 +10.9370

(Additional reporting by Iain Withers in London; Editing by Tom

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