Dollar Drops to One Week Low on Monday After U.S Consumer Sentiment Plunges to Lowest in 10 Years

The United States Dollar declined to a week-low against most currencies on Monday after dropping the most in seven weeks on Friday after a report showed U.S consumer sentiment dropped to the lowest since 2011 amid rising COVID-19 infections.

The dollar index, which tracks the greenback against six counterparts, changed slightly at 92.528, still maintaining a 0.50 percent decline posted at the end of last week.

However, the U.S Dollar dipped to 109.455 against the Japanese yen on Monday, its lowest since August 5, 2021. Against the euro common currency, the dollar was largely flat at $1.17960, near a week low of $1.18045 it closed on Friday.

“Does the survey signal an imminent turn in the U.S. economy? We doubt it given vaccine efficacy remains high and the hit to sentiment likely means more people will get vaccinated,” Tapas Strickland, an analyst at National Australia Bank, wrote in a client note. “Instead, the Delta surge in the U.S. is more a case of delay rather than derail as far as the recovery is concerned.”

Against the Nigerian Naira, the U.S Dollar traded exchanged at N515 on Monday at the parallel market popularly known as the black market. At the bureau de change section, the U.S. dollar was sold at N513 and N410.11 by the Central Bank of Nigeria.