US Dollar Falls to Lowest Level in Nearly 3 Months, Investors Attacking Risk Money Page all

NEW YORK, KOMPAS.com – The value of the US dollar fell to a nearly three-month low in late trading Friday (27/11/2020) local time, after strong economic data from China pushed investors towards riskier currencies and equity markets extended their rally.

The US dollar has fallen more than two percent against a basket of other currencies so far this month, following the election victory of US Democratic President Joe Biden and positive progress on the Covid-19 vaccine, dampening demand for safe havens.

Quoted from Among, the New Zealand dollar reached its highest level in more than three years.

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The Australian dollar meanwhile hit September levels after data showed October profits at Chinese industrial companies grew at the fastest pace since early 2017.

The British pound fell against the euro as the European Union and Britain said substantial differences remained during the Brexit trade deal.

That comes as EU chief negotiators prepare to travel to London in a last ditch effort to avoid a tumultuous end to the five-year Brexit crisis.

Along with Brexit headlines and data, Erik Bregar, Head of Forex Strategy at the Exchange Bank of Canada in Toronto, attributed the month-end US dollar selling as investors rebalanced portfolios after solid monthly gains for equities.

“There was talk throughout the week that the US dollar would experience a surge of sales going into Monday (30/11/2020),” said Bregar.

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But with many US traders still on holiday the day after the Thanksgiving holiday on Thursday (26/11/2020), Bipan Rai, head of North American Forex Strategy at CIBC Capital Markets, said the thinner trading volume was likely to exaggerate dollar moves.

“It starts with impressive industrial profit data in China and it translates into a very uneven background for liquidity in the North American time zone,” Rai said.

“In the long term this may be the right trend for the dollar. We think the dollar has further room for downside,” he added.

The Wall Street index rose, with the Nasdaq closing at a record high, in a shortened session on Friday (27/11/2020), as retailers kicked off the year-end shopping season and Covid-19 hospitalizations hit record levels.

The dollar was last down 0.24 percent against a basket of major currencies after hitting 91.756, the lowest since Sept. 1.

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But it didn’t hit September’s low of 91,737, the last of which was in April 2018.

Australian Dollar, seen as proxy for risks along with other commodity currencies such as the Kiwi and the Canadian dollar, which gained 0.41 percent.

The US dollar was last down 0.23 percent against the Canadian dollar, while the Kiwi was up 0.21 percent against the greenback.

Sterling was down 0.45 percent against the dollar and the euro was up 0.78 percent against the British currency.

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