The dollar halted five consecutive days of weak performance against its peers as stocks plunged and investor risk appetite fell.
The Bloomberg Dollar Spot Index, which measures the U.S. currency against 10 major peers, rebounded from an almost five-month low to record 0.1 percent gain to 1,006.59 as of 9:27 a.m. in New York trade. This is a notable gain from yesterday’s mark of 1,004.01, the lowest level since October 30. The measure has plunged 1 percent so far this week.
The yen gained against its 16 major peers, while the South Korean won extended its gains for the fourth-consecutive day.
“It’s dollar-buying and yen-buying in a sign of market jitters,” Brad Bechtel, a Stamford, Connecticut-based managing director at Faros Trading LLC told Bloomberg “More of the developed-market equity space is getting taken to the woodshed and sparked dollar- and yen-buying.”
The dollar remained slightly unchanged at $1.3877 a euro, after falling 1.2 percent this week, its steepest decline since September 20. It traded at 101.48 yen after earlier plunging 1.8 percent this week. The yen rose 0.1 percent to 140.82 per euro.
The South Korean won rose 0.5 percent to trade at 1,035.35 at Seoul close after earlier rising 1,031.55 on Thursday, its highest point since August 2008. The acceleration was mostly driven by the net foreign investment inflows of $894 million. The Bank of Korea also contributed to this after it revised this year’s growth forecast from 3.8 percent to 4 percent, while earlier reports showed that jobless rate fell in March.
The Australian dollar plunged 0.1 percent to 94 U.S. cents after earlier surging to 94.61 cents on Thursday, its highest intraday level since November 8. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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