The Dollar is still rallying. What about other currencies?
Friday’s green trade saw the U.S. dollar rebound from its multi-month-old lows against the British Pound (common currency) and the U.S. Pound. Market participants are awaiting the outcome of a series of central bank meetings that will take place next week. The dollar index increased 0.2% to 101.930 versus six major currencies. It rose from a near-nine-month low against the euro to 101.930 and a seven-month low against sterling.
Next week, the U.S. Federal Reserve, Bank of England and European Central Bank will announce rate decisions. Given the global economic context, they will discuss how to adjust their policy to fight rising inflation. Analysts in Forex didn’t expect any major moves this week. They await the U.S. jobs report on Friday.
The euro plunged 0.1% against $1.08760, while the greenback gained 0.1%. 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 rose against the dollar in Asia. Bets were placed on Tokyo’s higher inflation readings.
