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U.S. Dollar Recovers After Seeing Early Weakness

After coming under pressure in morning trading on Friday, the U.S. dollar has shown a notable recovery over the course of the day.

The U.S. dollar index is currently trading at 94.03, up 0.1 percent from the previous close, after falling as low as 93.65 earlier in the day.

The greenback is trading at 104.69 yen versus the 104.61 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1647 compared to yesterday's $1.1674.

The recovery by the dollar came as the currency benefitted from its safe haven appeal amid a continued spike in coronavirus cases.

The number of new COVID-19 cases in the United States reached a new record high on Thursday, with health experts expecting cases to soar going forward and death rates to triple by mid-January.

88,521 new coronavirus cases were reported in the U.S. on Thursday, according to data from Johns Hopkins University, an increase of 9,540 cases compared to Wednesday.

Uncertainty about the outcome of next week's presidential election may also have inspired traders to seek the relatively safe haven of the dollar.

In U.S. economic news, the Commerce Department released a report showing personal income rebounded by more than anticipated in the month of September.

The Commerce Department said personal income climbed by 0.9 percent in September after tumbling by a revised 2.5 percent in August.

Economists had expected personal income to rise by 0.4 percent compared to the 2.7 percent nosedive originally reported for the previous month.

The report also showed a bigger than expected increase in personal spending, which surged up by 1.4 percent in September. Spending was expected to match the 1.0 percent jump seen in August.

A separate report from the University of Michigan showed consumer sentiment improved slightly more than initially estimated in the month of October.

The report showed the consumer sentiment index for October was upwardly revised to 81.8 from the preliminary reading of 81.2. Economists had expected the reading to be unrevised.

With upward revision, the consumer sentiment index is a bit further above the final September reading of 80.4.

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