• MSCI EM currency index hits record high
AMSTERDAM/LONDON: The dollar was stuck around a one-week low on Friday, under pressure ahead of US jobs data that is expected to point to a strong post-pandemic economic recovery in the United States and to increase investor risk appetite.
Against a basket of major currencies, the dollar index was at 90.837, down less than 0.1% on the day at 1054 GMT. It was on track for a loss of around 0.5% on the week overall, having seen its worst day in nearly two weeks on Thursday.
In the previous session, a larger-than-expected fall in jobless claims saw stocks rise and the dollar fall, suggesting that the dollar is acting as a safe-haven currency, hurt by improving risk appetite.
But if improving economic data stokes inflation worries and leads to expectations that the Federal Reserve will reduce monetary stimulus, that could boost US yields and the dollar.
“If the dollar’s going to find another leg of…