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Dollar Retreats After Climbing To Near 10-month High

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Dollar Retreats After Climbing To Near 10-month High

The U.S. dollar climbed to a near 10-month high on Friday, as uncertainty about the pace of global economic recovery due to surging coronvirus cases pushed up the demand for the safe-haven currency.

The dollar’s cause was supported by Fed taper talks as well. However, the greenback retreated and pared its gains as the day progressed.

The dollar index rose to 93.73 in early New York session, but turned weak subsequently and slid to 93.44, down 0.14% from the previous close.

Against the Euro, the dollar weakened to $1.1704, after having firmed to $1.1665 earlier in the day.

The Pound Sterling recovered to $1.3625 a unit, from a low of $1.3602. Data showed a surprise fall in U.K. retail sales last month. Sales volumes fell by 2.5% from June, marking the biggest drop since January when Britain returned to lockdown.

The Yen was slightly weak against the dollar at 109.81. Official data showed overall consumer prices in Japan were down 0.3% year-on-year in July. That missed expectations for a flat reading following the downwardly revised 0.5% contraction in June.

Against the Aussie, the dollar gained marginally, recovering to 0.7140 from 0.7147.

The Swiss franc firmed to 0.9169 a dollar, gaining more than 0.2%, while the Loonie recovered from a low of 1.2951 a dollar, to $1.2830.

Data from Statistics Canada showed retail sales climbed 4.2% in June compared to a month earlier. However, the data showed retail sales likely fell 1.7% in July. Retail Sales in Canada increased 6.2% in June of 2021 over the same month in the previous year.

Retail Sales Excluding Autos in Canada increased 4.7% month-on-month in June, the first increase in three months.

The material has been provided by InstaForex Company – www.instaforex.com