Euro,‎‏ ‏sterling head for weekly gains ‎

The euro and the pound sterling are heading to achieve weekly gains against the dollar on Friday, as the demand for global bonds led by the United States led to a decline in yields, as well as the dollar, which gave relief even to the faltering Japanese yen.

According to Reuters, the euro increased in recent transactions by 0.1 percent to $1.0632, and is heading, with the gains it achieved earlier in the week, towards achieving weekly gains of 0.63 percent. Likewise, the British pound is heading to record weekly gains of 0.61 percent, with its stability on Friday at $1.2193.

The dollar index is close to recording a weekly decline of 0.4%, marking the third weekly loss in the last 16 weeks.

The dollar’s decline after the recent strong rise reflects the decline in US bond yields. The benchmark ten-year US Treasury bond yield is heading towards a weekly decline of 17 basis points, the largest since July.

This decline came due to the US Treasury Department announcing smaller-than-expected increases in the supply of long-term bonds, and Federal Reserve Chairman Jerome Powell seemed more confident in indicating that the US central bank had finished raising interest rates in the press conference after the meeting on Wednesday.

The yen strengthened its position slightly on Friday, recording 150.3 per dollar, after a stormy week during which it touched the lowest level in a year against the dollar and the lowest level in 15 years against the euro on Tuesday after the Bank of Japan adjusted its yield curve control policy.

‎The Australian dollar remained almost unchanged at $0.6435, a level close to the highest level in more than a month at $0.6456 that it touched on Thursday.

Both the Australian and New Zealand dollars increased by 1.6% this week which is their best weekly performance since mid-July.