On Friday, the US dollar stopped sliding down after Steven Mnuchin, US Treasury Secretary, decided to halt a few of the pandemic lending by the Federal Reserve, disrupting a very risk-prone rally along with surprising numerous investors who were banking upon the support given by the central bank.
This announcement seemed to have ruined the positive mood that was prevailing in the nation following information stating US Senate Democrat and Republican leaders had agreed to restart the negotiations regarding another package for coronavirus stimulus.
Mnuchin had been aiming for the re-appropriation of the large sum of Treasury money that was allocated by the CARES Act. Under this scheme, almost $455 billion was allocated earlier in the year 2020 to make miscellaneous spending. However, many investors have been concerned regarding the ending programs which play a very significant role in the stabilization and reassurance in the stock market. All these measures are necessary for the stabilization of the US dollar.
It was also demanded by the Fed that the entire emergency facility that was set up at the beginning of the COVID-19 pandemic must be put to use as a backstop which is an important purpose for the recovery of the US dollar.
Investors are relying on MLF for some emergency lending to the core borrowers of the market.
Along with all these risky businesses, the recently instituted curfew in California to curb social gatherings during this season of festivities is not going too good. Also preventing non-essential actions will sour the risk appetite.
US Dollar Value Against Other Currencies
Since the past few days, the US dollar has been unstable against risky currencies owing to the coronavirus vaccine developments and optimisms of decreased political uncertainty following the US presidential election.
The US dollar index was 92.306 and on Thursday it was as low as 92.236, even after being down by 0.3% during the week.
Euro gained $1.1874 and the highest in the week was $1.18935 on Tuesday and had surged by 0.3% this week.
The yen was 103.80 for every US dollar and gained 0.8% this week.
The response in the currency stock was very limited for the US dollar.
Nonetheless, the currencies saw an interchange at $1.3258. The Euro was 0.8955 pounds for the last 2 days.
The Australian dollar was $0.7284 and terminated all gains within this very week.
The Chinese yuan was 6.5716 for every US dollar after touching a high of 2 and a half of 6.5318 on 18th November, Wednesday.
The lira of Turkey saw a jump of almost 2.3% this Thursday following the hike in the big rate and the hope of being strong by Naci Agbal, governor of the central bank of Turkey.
Lira interchanged with the US dollar at 7.5450 as it was at an all-time high of 2 months. The lira is the best performing among other currencies in November.