Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Edges Down, But Near Multi-Month Highs Over Signs of Economic Recovery

ForexMar 25, 2021 09:53PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – The dollar was down on Friday morning in Asia but was still hovering near four-month highs as positive U.S. economic data, COVID-19 vaccine rollouts and rising Treasury yields all continued to cap the U.S. currency’s losses.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged down 0.13% to 92.790 by 9:47 PM ET (1:47 AM GMT).

The USD/JPY pair inched up 0.05% to 109.33, its highest level since June 2020.

The AUD/USD pair was up 0.31% to 0.7602 and the NZD/USD pair was up 0.32% to 0.6971. The Antipodean risk currencies recovered from their losses earlier in the week and are likely to remain supported because of the two countries' success in limiting the economic fallout from COVID-19, according to some investors.

The USD/CNY pair inched down 0.04% to 6.5423. The GBP/USD pair edged up 0.16% to 1.3754, with the U.K. to release retail sales figures for February later in the day.

The euro fell against the dollar to $1.1776, the strongest for the greenback since November 2020. Investor sentiment for the single currency has weakened thanks to fresh lockdowns and delays in the COVID-19 vaccine rollout across the continent.

Although Germany releases its March Ifo Business Climate Index later in the day, which is expected to show improved business morale, it is unlikely to stop the euro’s fall. The slow vaccine rollout and disputes with the U.K. over vaccine exports remain dominant themes for now, according to other investors.

There were warnings, however, against chasing the dollar higher from current levels from some corners over worries that the dollar’s gains over the past few weeks have been too rapid.

"The euro has broken through the 200-day moving average, and that is a clear sign that it will continue to go lower... the yen is getting strong on some of the crosses, which will cap dollar/yen. Yields have supported the dollar, but this move could start to run out of steam," MUFG Bank head of global markets research Minori Uchida told Reuters.

In the U.S., the number of initial jobless claims for the week fell to a one-year low of 684,000 from the 781,000 claims filed during the previous week. The number was also down from the 730,000 claims in forecasts prepared by

Further data, including personal spending in February, is due later in the day and could provide further hints about the U.S. economic strength.

President Joe Biden also pledged to double the U.S. vaccination rollout plan after reaching the previously set goal of 100 million shots 42 days ahead of schedule.

Dollar Edges Down, But Near Multi-Month Highs Over Signs of Economic Recovery

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email