Dollar rebound fades as traders boost risk sentiment

The dollar was on course for its worst week of the year on Friday as traders cheered in the Biden administration. Investors supported risk assets and boosted bets that a pandemic recovery could push the dollar lower. 

The dollar fell nearly 0.8% this week to a one-week low of $1.2173 against the euro on Friday. The dollar index fell by the same margin but steadied at 90.075 in Asian trade.

The euro found support in the dovish policy set by the European Central Bank. The Norwegian crown was up 1.8% this week and the Swedish crown 1.4%.

The Aussie rose 0.8% and the kiwi climbed over 1% so far in the week. The pound hit a 2 ½-year high of $1.3745 overnight on hopes that Britain’s vaccine rollout can encourage economic growth.

The dollar steadied at 103.58 against the safe-haven yen.