Dollar steadies as Mnuchin calls time on Fed’s lending

The dollar steadied on Friday after U.S. Treasury Secretary Steven Mnuchin called an end to some of the Federal Reserve’s lending amid the pandemic. Mnuchin’s statement derailed a risk rally and rattled investors leaning on central bank support.

The dollar index traded at 92.306, a little below Tuesday’s high of $1.18935. It is up 0.3% for the week. The safe-haven yen bought 103.80 on the dollar, gaining 0.8% for the week. 

However, the reaction in currency markets was limited compared to the U.S. stocks and bond markets.

The British pound was on the defensive after news that European leaders will urge the European Commission to send no-deal Brexit plans as the deadline approaches.

The pound stood at 1.3258 against the euro and at 0.8955 pence per euro. The Aussie was little changed at $0.7284, while the Turkish lira traded at 7.5450. 

In offshore trade, the yuan was flat at 6.5716 to the dollar.