XE Market Analysis: Asia – Dec 04, 2020

The DXY printed fresh 32-month lows of 90.48 in early N.Y. trade on Friday, posting its eighth-consecutive lower daily low in the process. Risk-on conditions prevailed, resulting in some USD selling, though the major driver of recent USD losses appeared to be Covid vaccine hopes, where widespread distribution over the next few months is expected to see the global economy return to near-normalcy, likely to benefit emerging market economies the most. As a result, repositioning into emerging currencies and out of the Dollar will likely remain a feature.