As investors await the Fed’s Jackson Hole symposium on Friday, the greenback hovered near a one-week low versus major peers amid optimism the coronavirus Delta variant will not derail a global economic recovery.
After dropping overnight to 92.801 for the first time since Aug. 17, the dollar index climbed by 0.05% to 92.867, measuring the currency against six rivals at the time this report was written.
Often considered a barometer of risk appetite, the Australian dollar dropped 0.07% to $0.7269 after hitting a one-week high of $0.72805 the previous day.
What this means
This index tracks the value of the United States dollar in relation to other major currencies (such as the British pound sterling, Swedish krona, and Euro). For individuals who wish to meet their foreign exchange payment obligations via dollar transactions to countries such as Europe and Japan, they would now have to pay fewer dollars.
As a result of the FDA’s approval of COVID-19 made by Pfizer and BioNTech on Monday, investors are more optimistic than they were before.
In addition, on Tuesday, top infectious disease expert Dr Anthony Fauci said COVID-19 could be managed by early next year if full approval of Moderna is granted.
According to overnight data, new orders for key U.S-made capital goods were steady in July, and shipments rose, suggesting businesses will invest in equipment to keep the economy growing in the third quarter.
On Thursday, the dollar was little changed against the euro at $1.1765, after touching a one-week low of $1.1775 on Wednesday.
With the yen near the middle of its range since early July, it rose 0.05% to 110.06 yen, another safe-haven currency.