The Dollar continues to rally. What about other currencies?
On Friday, the U.S. Dollar traded in green after recovering from multi-month lows against both the British Pound and the common currency. Market participants are awaiting the outcome of a series of central bank meetings that will take place next week. The dollar index rose 0.2% to 101.930 against six major currencies. This is after the currency recovered from a near nine-month low against the euro and a seven month low against sterling.
Next week will see rate decisions by the U.S. Federal Reserve and Bank of England. Given the global economic context, they will discuss how to adjust their policy to fight rising inflation. Analysts from Forex did not anticipate any big changes to the end of this week. They will be waiting for the key U.S. employment report on Friday.
The euro fell 0.1% against the greenback at $1.08760. The Pound was also in red at $1.23670, losing 0.4%. MUFG’s currency analysts said that the USD failing to break lower means that there is hope for a turnaround.
The Japanese yen surged against the dollar in Asia. Bets were placed on Tokyo’s higher inflation readings.