The US dollar fell slightly on Friday, as did the Japanese yen as riskier currencies were favored, with a rally in US Treasuries running out of steam and global equity markets stabilizing.

Some sluggish US data, along with an increase in COVID-19 cases in many parts of the world, has fueled concerns that the global economic recovery is faltering, leading to an eight-day streak of decline for the Treasury to 10 year yield which ended on Friday.

“This week was all about the bond market and the collapsing Treasury yields,” said Edward Moya, senior market analyst for the Americas at Oanda Corp. “Part of that decision was probably exaggerated.”

The rise in yields supported riskier assets and currencies, with global equity markets rising and the commodity-linked Australian and New Zealand dollars bidding.

The Australian dollar rose 0.79% to $ 0.74905, after hitting a new year low of $ 0.7410, and the New Zealand dollar rose 0.81% to 0.7002 USD, after plunging more than 1% in the previous session.

In Taipei, the new Taiwan dollar fell against the greenback, losing NT $ 0.052 to close at NT $ 28.086, down 0.34% for the week.

The euro extended its gains in addition to a 0.45% jump on Thursday, rising 0.27% to US $ 1.1876.

The US dollar index slipped 0.34% to 92.10, down 0.1% for the week.

The greenback’s decline was likely due in part to profit taking ahead of key US inflation data for last month, due next week, said Joe Manimbo, senior market analyst at Western Union Business Solutions.

“Dollar bulls are just taking a few chips off the table,” he said.

The yen, seen as a safe haven currency, fell as risk appetite began to recover.

“Yesterday’s decline in the dollar-yen is reversing with equity risk appetite, suggesting that there are no broader ripple effects in markets as of yet – the same movement is seen in the US 10-year yield rebounding above 1.3%, “Saxo Bank A / Schief investment said officer Steen Jakobsen.

The yen eased 0.39% to 110.185 yen to the US dollar, returning some of its gains against the greenback on Thursday, when it recorded its biggest daily rise since November last year .

The Canadian dollar strengthened 0.61% against the US dollar to US $ 1.2453 as oil prices rose and data showed Canada created more jobs than expected last month while public health restrictions have been relaxed in several parts of the country.

Elsewhere, the People’s Bank of China has said it will reduce the reserve requirement ratio – the percentage of deposits lenders must keep – by 50 basis points for all banks, starting Thursday, which will help boost the economy. return to riskier assets.

CNA Supplementary Reports, with Editor-in-Chief

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