Dollar on borrowed time

01 Jan, 2021 - 00:01 0 Views
Dollar on borrowed time

The Herald

The US dollar was ending 2020 in a downward spiral on Thursday with investors wagering a global economic recovery will suck money into riskier assets even as the US has to borrow ever more to fund its swelling twin deficits.

The euro stood at $1,2291, having hit its highest since April 2018 with a gain of almost 10 percent for the year. The next stops for the bull train are $1,2413 and $1,2476, on the way to the 2018 peak at $1,2555.

The dollar was lying at 103.15 yen, but managed to hold above the December low of 102,86.

It also fell against the Chinese yuan, breachingh 6.4900 for the first time since mid-2018, though Chinese banks were later reported to be buying dollars to limit the drop.

Sterling held gains after lawmakers approved a post-Brexit trade deal with the European Union, stretching as far as $1,3641 a level unseen since May 2018.

Against a basket of currencies the US dollar had sunk to 89,643, having touched it lowest since April 2018. That left it down 7,2 percent on the year, and no less than 13 percent on the 102,99 peak hit during the market mayhem of mid-March. —Reuters.

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