The euro extended its gains against the U.S. dollar on Friday, closing 0.87 percent higher on the day at 1.12056. The European currency also had its best week since the start of the year, gaining an impressive 2.5 percent since Monday.
The euro is now just 0.82 percent away from recovering all losses incurred since November 9th of 2016 - the day Trump was elected U.S. president.
While there weren’t any significant economic news releases coming out of Europe over the past five days, the euro’s exchange rate against the dollar was affected greatly this week by political uncertainty in the United States.
Calls for the impeachment of President Trump by some members of the Democratic National Committee; the constant barrage of news reports regarding the unexpected firing of FBI Directory James Comey by President Trump; as well as the intensifying investigation of Trump’s contacts with Russian officials during the election, took its toll on the U.S. dollar.
Including Friday’s losses, the U.S. Dollar Index (DXY) sustained losses of more than 2 percent this week. The DXY closed on Friday at its lowest level in 6-months: 97.21!
Euro banknotes photo by CostCalculator