Dollar into losses

The dollar was ending 2020 in a downward spiral on Thursday with investors wagering a global economic recovery will suck money into riskier assets even as the yawning U.S. twin deficits argue for an ever cheaper currency.

The euro steamed ahead to $1.2305 , having hit its highest since April 2018 with a gain of almost 10% for the year. The next stops for the bull train are $1.2413 and $1.2476, on the way to the 2018 peak at $1.2555.

The dollar also dropped to 103.16 yen, but stopped just short of the December low at 102.86. Trade was thin in Asia with Japan and South Korea on holiday.

Sterling jumped as lawmakers approved a post-Brexit trade deal with the European Union. The pound stretched as far as $1.3641, levels not seen since May 2018.

Against a basket of currencies the dollar had sunk to 89.553, having touched it lowest since April 2018. That left it down 7.2% on the year, and no less than 13% on the 102.99 peak hit during the market mayhem of mid-March.

The next target is 89.277 and then 88.251, which was the absolute low in 2018.

Avadoot Shah

See author's posts