Dollar heads for a weekly loss as fears of a growth slowdown fade; crypto-currency rebound loses steam.

Dollar faces weekly loss as fears of slowdown subside;  The recovery of the cryptocurrency is losing steam.

The dollar hovered around recent lows on Friday and faced a modest weekly decline as traders’ concern over rate cut talks eased in the Federal Reserve’s minutes, despite falling commodity prices and fears of virus outbreaks capping losses.

The dollar lost the rebound it had gained after mentioning possible rate cut discussions in the minutes of the April Fed meeting, sparking fears of premature rate hikes.

Investors now believe that action is still a long way off and that the way could be clear for a resumption of the downtrend in April given the weight of the US trade and account deficits.

Against the euro, the dollar was at $ 1.2230, not far above the four-month low of $ 1.2245 it hit earlier in the week and about to test the large support around $ 1.2345. The dollar index was held below 90 and was most recently at 89.777.

The index, which measures the greenback against six major currencies, is down about 0.6% this week. Against the Japanese yen, the dollar was 108.74, a weekly loss of around 0.5%.

“It’s been a little over 24 hours since the markets were startled by the prospect of the US Federal Reserve curtailing asset purchases, but after literally sleeping on it, sentiment seems less sour,” ANZ analysts said in a note. “What seems reasonable – it’s not that the Fed is about to actually want to act.”

In cryptocurrencies, the recovery from the crash on Wednesday lost some of its momentum. Bitcoin was trading at around $ 40,000 in Asia, which is more than 30% above the week’s low, but it struggled to hold gains at the start of the session. Ether also found profits difficult, falling back to $ 2,786. Both are on their way to weekly losses of more than 10%.

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