The US dollar is struggling for direction against its G10 currency counterparts on renewed coronavirus fears and central banks reducing the frequency of dollar swaps. With uncertainty in global financial markets amid the pandemic, some analysts think that the greenback could reclaim some of its massive gains in the first quarter.

The US stock market experienced a huge turnaround at the end of the trading week on reports that Apple would re-close some of its stores in four states due to an increase in coronavirus cases. The US has experienced a resurgence in confirmed coronavirus cases in more than a dozen states, climbing 15% from a week ago. China has also witnessed an uptick in cases, forcing health authorities to reimpose lockdowns in many jurisdictions across the world’s second-largest economy.

The US has still not finished its first wave of the virus outbreak, and there are some concerns that China could be at the beginning of a second wave.

Global coronavirus cases have topped 8.5 million, while the death toll is closing in on 500,000.

On Friday, it was announced that the Bank of England (BoE), the Bank of Japan (BoJ), the European Central Bank (ECB), and the Swiss National Bank (SNB) would reduce the frequency of their seven-day US dollar operations from daily to three times per week. The central banks alluded to improvements in dollar funding conditions and the reduction in demand during the liquidity-injecting operations. The decision was made in consultation with the Federal Reserve.

It was quiet on the data front on Friday. The Baker Hughes total rig count came in at 266 in the week ending June 19, down from 279 in the previous week.

The US Dollar Index, which measures the greenback against a basket of currencies, rebounded on Friday and propelled the currency to a weekly gain. The index rose 0.18% to 97.60, from an opening of 97.42, at 17:34 GMT on Friday. It will post a weekly jump of about 0.25%. When there are volatility and uncertainty in global financial markets, investors seek shelter in safe-haven assets, which explained the buck’s 4% spike at the height of the pandemic.

The USD/CAD currency pair was unchanged at 17:36 GMT on Friday. The EUR/USD tumbled 0.12% to 1.1190, from an opening of 1.1206.