Dollar falls further ahead of non-farm payrolls data

The dollar fell against its peers on Friday ahead of the release of the U.S. non-farm payrolls data, which investors fear could strengthen the view that momentum in the U.S. economy is slowing.

Sentiment firmed against the dollar due to rising U.S. coronavirus cases, a steady decline in Treasury yields, and a stalling of the additional coronavirus stimulus.

Analysts expect the dollar to fall further, especially on the euro, the franc, and the yen.

The dollar was quoted at $1.1868 on the euro, nearing its weakest in over two years. The pound stood at $1.3134, close to its highest level since March.

The dollar sat near a five-year low of 0.9109 against the Swiss franc and stood at 105.57 on the safe-haven yen.

U.S. non-farm payrolls are expected to show a slowdown in job creation compared with last month, a sign that the coronavirus resurgence is stalling economic recovery.

The dollar index sat at 92.864, close to a two-year slump.

In the U.S. Congress, Democrats and Republicans failed to craft a deal on the new fiscal stimulus that investors say is essential in preventing the economy from losing even more momentum.

Adding to tensions is the U.S.-China conflict with the latest move being Trump’s executive order to ban transactions with Chinese company and TikTok owner, ByteDance. Trump is also looking to ban Tencent Holdings Ltd, the owner of WeChat.

The yuan steadied at 6.9568 on the dollar. The Aussie stood at $0.72223 and the kiwi traded at $0.6681.