The dollar strengthens its gains as hopes for a quick recovery fade away
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Economy News _ Baghdad
The dollar is heading towards a rise of two percent on a weekly basis today, Friday, supported by the rise in oil prices and investors sought a safe haven in light of the worsening economic consequences of the Corona virus pandemic.
The gains were strengthened by the strength of the dollar after it concluded a volatile month, when it rose as investors scrambled towards liquidity, and then declined as the Federal Reserve (the US central bank) flooded the market with liquidity.
The largest ever daily rise in oil prices helped the US currency achieve its best daily performance in two weeks against the euro on Thursday, as the United States is the world's largest crude producer.
The dollar held onto those gains, to settle at $ 1.0836 for the euro today, advancing 2.7 percent a week. Against a basket of currencies, the dollar was up 2 percent since the start of the week at 100.270, its best performance since mid-March.
The movements in Asian trading were slight as traders are preparing for bad news when the jobs data is being published by 1230 GMT.
The Corona virus is worse in the United States. With the extension of public isolation measures, US jobless claims have more than doubled, reaching a massive level of 6.6 million last week.
The New Zealand dollar fell 0.2 percent to $ 0.5909 and sterling fell slightly to $ 1.2369. The dollar held steady at 108.00 Japanese yen.
Most of the gains that lasted for a short period of currencies exposed to oil, such as the Norwegian Krone and the Canadian dollar, were lost after oil trimmed some of its gains in light of concerns about production cuts.