Dollar Slips Over Increasing Hopes for COVID-19 Recovery

The dollar was down on Friday morning in Asia, after investors retreated from the safe-haven asset growing hopes of a COVID-19 recovery and caused markets to be heavily short in dollars.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies edged down 0.18% to 90.653 by 12:02 AM ET.

The USD/JPY pair edged down 0.14% to 104.06.

The AUD/USD pair gained 0.35% to 0.7560. The AUD pushed past the 75 U.S. cents mark, the first time since mid-2018, as iron ore, Australia’s biggest export commodity, saw prices surge to a two-and-a-half year high.

Across the Tasman Sea, the NZD/USD pair inched up 0.10% to 0.7103, while the USD/CNY pair inched down 0.07% to 6.5389.

The GBP/USD pair was up 0.21% to 1.3321, with U.K. and EU negotiators taking a final stab at reaching a Brexit trade deal.

The pound fell 0.8% during the previous session after U.K. Prime Minister Boris Johnson warned on Thursday there was “a strong possibility” that the U.K. and the EU would fail to strike a deal. It has shed 1% so far during the week, with efforts to strike a deal with the EU before protections on around $1 trillion in annual trade expire at the end of December showing little progress up to now.