The US dollar stumbled on Friday, falling for an eighth straight week, as investors continued to shun it and looked to other currencies whose economies are outperforming that of the US in terms of managing the COVID-19 pandemic.
The delay in the passage of additional US stimulus for virus relief did not help the US dollar’s cause either.
Its eight straight weeks of losses was its longest run of weakness in a decade, Refinitiv data showed, with Friday’s decent batch of US economic data failing to lift the greenback.
“The fact is the domestic coronavirus in the United States is the worst epidemic of any comparable economy, and that’s because of the lack of management from the US authorities,” said Ranko Berich, head of market analysis at Monex Europe in London.
“That has meant the outbreak has created a materially worse outlook for the US economy than its peers,” Berich said.
Hopes for additional stimulus to combat the pandemic faded on Friday, with the US Senate and House of Representatives in recess and no fresh talks scheduled with US President Donald Trump’s negotiators.
The US dollar index slipped 0.26 percent to 93.096.
The dollar showed little reaction to data showing a 1.2 percent rise in the US retail sales’ headline number last month, which was lower than expected, but a higher than forecast gain of 1.9 percent, excluding autos.
Other reports such as consumer sentiment and industrial production had little impact.
The New Taiwan dollar was down against the greenback on Friday, losing NT$0.006 to close at NT$29.542. Turnover totaled US$687 million during the trading session.
The NT dollar lost 0.09 percent from NT$29.514 a week earlier.
Meanwhile, the euro continued its rise, up 0.1 percent at US$1.1827, increasing for eight straight weeks.
Growing faith in Europe’s rebound and concern about the US response as the novel coronavirus spreads and politicians remain deadlocked over the next relief package have bolstered the euro.
The pound was also 0.4 percent higher against the dollar at US$1.3110, as investors sought to focus on a rebound in growth in June rather than a stunning 20 percent quarterly contraction.
The biggest loser this week was the New Zealand dollar, which was down 0.86 percent against the US dollar this week.
New Zealand has been dealing with a fresh COVID-19 outbreak. Moreover, its central bank this week flagged increased bond buying and again mentioned the prospect of negative rates.
The New Zealand currency was last down 0.06 percent at US$0.6542.
Additional reporting by staff writer, with CNA
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