Dollar falls to 1-week low ahead of key US data

The US dollar fell against its peers on Friday to a 1-week low while deepening losses for the fourth straight day, to head for the first weekly loss in 2021 due to weak demand and hopes about a huge US stimulus package by the new US President Joe Biden, ahead of the release of key US data.

The dollar index fell 0.1% to its 1-week low of 90.05 points, after opening at 90.15 and hit a high of 90.17.

The greenback lost 0.4% yesterday, in the third straight daily loss due to improved appetite in high risk currencies.

The dollar index lost around 0.75% so far this week, to head for its first weekly loss in 2021and during the last three weeks.

Demand for the US dollar slowed down due to high market sentiment and improved appetite in high risk currencies thanks to hopes about a huge stimulus package by the new US President Joe Biden's administration.

Joe Biden's inauguration ceremony took place on Wednesday at the Capitol building in Washington, and he was sworn in as the 46th US president.

Biden called on Americans to unite and stressed that he will always work for democracy in his country. Biden is also expected to inject a $1.9 trillion Covid relief bill.

At 14:45 GMT, the US manufacturing PMI is expected down to 56.6 from 57.1, while services PMI is expected down to 53.3 from 54.8.