Dollar Sees A Choppy Ride Against Other Major Currencies

Dollar Sees A Choppy Ride Against Other Major Currencies

The U.S. dollar saw a notable uptick by Friday late morning, then retreated and spent a brief while in the red before edging up slightly later in the day.

The dollar’s movements against its peers were impacted by the results of stress tests for banks released by the Federal Reserve and the final results of the consumer-sentiment survey by the University of Michigan. Reports showing a sharp surge in new coronavirus cases across the U.S. made an impact as well on the currency.

The University of Michigan said today that consumer sentiment in the U.S. slipped to 78/1 in June from an initial 78.9.

Releasing the results of the stress tests on banks, the Fed said the nation’s biggest banks are healthy but could suffer up to $700 billion in losses on soured loans if the economy languishes. It also ordered certain banks to cap dividends and suspend share buyback to conserve funds.

The dollar index, which rose to 97.68, fell to around 97.35 and was last seen at 97.50, up marginally from previous close.

Against the Euro, the dollar was flat at $1.1221 after rallying to $1.1241 earlier in the day, from a low of $1.1197.

Against Pound Sterling, the dollar was stronger at $1.2337, firming up from Thursday’s $1.2419.

The yen was little changed against the dollar by late afternoon, trading at 107.20 a dollar, after falling to a low of 107.35 from 107.20 a dollar.

Against the Aussie, the dollar was stronger by about 0.35% at 0.6863, with its safe haven status giving it the upper hand against the Australian currency.

The Canadian loonie was weaker by about 0.4% at 1.3688 a dollar, while the Swiss franc flat at 0.9482 against the dollar.