Friday’s Dollar Rose What about other currencies?
The U.S. dollar climbed on Friday, gaining slightly after the previous session’s rally. However, forex markets were still muted while investors waited for U.S. job data. The report is due later today and might influence the Federal Reserve’s plans for future interest rate hikes.
At its Wednesday meeting, the Fed raised rates by 25 basis points. That’s lower than the previous 50 bps hikes. The agency is trying the temper its aggressive policy as inflation weakens and the country’s economy is moving towards a recession. This news sent the greenback into a red zone. The currency had experienced substantial losses, but it recovered suddenly on Thursday.
The dollar jumped against the Euro after the European Central Bank’s policy decision. The ECB increased rates by 50 bps Thursday to reach 2.5%. Therefore, the common currency lost 0.1%. Today, it was exchanged lower by 0.1% to $1.09. However, the Euro is still higher than its September 20-year high of $0.953, which was reached in September. Analysts think the ECB might stop raising rates after one more rise in March.
Alvin Tan of RBC Capital Markets’ Asia FX Strategy noted that the…