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Dollar falls during coronavirus pandemic, biggest weekly drop since 2009

The House has approved the coronavirus spending bill, which will now go the President Trump’s desk for signing. Video

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The dollar posted its biggest weekly decline in more than a decade on Friday, as trillions of dollars’ worth of stimulus efforts by governments and central banks helped temper a rout in global markets driven by the coronavirus pandemic.

The dollar surged in March as tumbling stock and debt markets caused a scramble for the world’s most liquid currency.

DOW SLIPS AFTER 3-DAY RALLY COINCIDES WITH $2T CORONAVIRUS AID

But big government spending pledges and coordinated efforts by central banks around the world to increase the supply of dollars have supported a rally in other major currencies.

Oliver Pursche, 1879 Advisers chief market strategist, says the fact that the government stepped up and took real action helped soften the market. Video

The U.S. House of Representatives on Friday approved a $2.2 trillion aid package – the largest in American history – to help people and businesses cope with the economic downturn inflicted by the coronavirus outbreak.

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The dollar dipped 0.87% against a basket of currencies Friday to 98.41. It fell 3.90% this week – its biggest weekly decline since March 2009.

The dollar index last week had racked up its biggest weekly gain since the financial crisis.

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