The US dollar fell against a basket of major currencies on Friday, resuming its losses after taking a breather yesterday, to head today for its 1-month low and the second weekly loss in a row, due to the latest developments in the US bond market.

The dollar index fell 0.2% to 91.50 points, after opening at 91.66 points, and hit a low of 91.81 points.

The greenback gained less than 0.1% yesterday, within recovery attempts from a 1-month low of 91.49 points.

The US dollar index lost 0.75% so far this week, to head for the second weekly loss in a row due to improved risk appetite and slowing demand.

The market sentiment improved after the release of strong economic data in the US and China, which boosted hopes for a fast and strong economic recovery around the world, in addition to a drop in the US Treasury bond yields.

The 10-year US Treasury yield fell this week, and hit a 5-week low of $1,529, after after Federal Reserve officials repeatedly assured that interest rates will remain low until there is a safer economic recovery.

Fed Chair Jerome Powell said the Fed will cut its monthly bond purchases in the appropriate time before it commits to increasing interest rates.

Oil prices continued to rise as the US market opened on Friday, to extend gains for the fifth straight day, while on the cusp of a strong weekly gain after the Chinese economy showed better-than-expected growth rate during the first quarter of 2021, and hopes of higher global demand during the second half of 2021.

US crude rose 0.8% to the highest level since March 18 at $63.85 a barrel, after opening at $63.31, and hit a low at $63.27, and Brent crude rose 0.8% to the highest since March 18 at $67.36 a barrel, after opening at $66.84, and hit a low of $66.76.

US crude gained 0.75% yesterday, and Brent crude futures rose 0.8%, in the fourth straight daily gain, on global demand hopes.

The Chinese economy grew 18.3% during the first quarter of 2021, the best growth rate since the start of collecting these data in 1992, after growing by 6.5% during the fourth quarter of 2020.

This data in addition to strong retail sales in the US, boosted hopes for a fast and strong economic recovery around the world, which lifts the global demand for fuel.

The International Energy Agency reported that the balance between oil demand and supply should start to take place in the second half of 2021.

OPEC stated that global demand for oil will grow by 5.95 million barrels per day this year, which is higher by about 70K bpd from its previous estimates.

Oil prices continued to rise as the US market opened on Friday, to extend gains for the fifth straight day, while on the cusp of a strong weekly gain after the Chinese economy showed better-than-expected growth rate during the first quarter of 2021, and hopes of higher global demand during the second half of 2021.

 US crude rose 0.8% to the highest level since March 18 at $63.85 a barrel, after opening at $63.31, and hit a low at $63.27, and Brent crude rose 0.8% to the highest since March 18 at $67.36 a barrel, after opening at $66.84, and hit a low of $66.76.

US crude gained 0.75% yesterday, and Brent crude futures rose 0.8%, in the fourth straight daily gain, on global demand hopes.

The Chinese economy grew 18.3% during the first quarter of 2021, the best growth rate since the start of collecting these data in 1992, after growing by 6.5% during the fourth quarter of 2020.

This data in addition to strong retail sales in the US, boosted hopes for a fast and strong economic recovery around the world, which lifts the global demand for fuel.

In its monthly report on energy markets this week, the International Energy Agency said that a rebalancing of oil demand and supply will take place in the second half of this year.

The International Energy Agency reported that the balance between oil demand and supply should start to take place in the second half of 2021.

OPEC stated yesterday that global demand for oil will grow by 5.95 million barrels per day this year, which is higher by about 70K bpd from its previous estimates.

The US Energy Information Administration reported today that crude inventories fell 5.9 million barrels to 492.4 million during the past week, while analysts forecast a drop by 2.9 million barrels.

Euro rose in European trade against dollar after a hiatus from gains yesterday, heading for the second weekly profit in a row as US 10-year treasury yields continue to decline, while US and European stocks hit new record highs. 

EUR/USD rose 0.2% to 1.1988, after closing down 0.15% yesterday away from six-week highs at 1.1993. 

Euro is on track for a 0.75% profit this week, the second suck weekly profit in row on strong risk appetite in markets. 

US treasury yields fell to five-week lows at 1.529 after Fed officials asserted interest rates will be low until there's stronger economic recovery. 

Fed Chair Jerome Powell said the Fed will cut its monthly bond purchases in the appropriate time before it commits to increasing interest rates. 

ECB President Christine Lagarde said the euro zone economy is based on two pivotal factors of financial and monetary stimuli, which can't be removed until recovery is complete.