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On Friday, the U.S. Dollar fell while Euros and Pounds rose

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On Friday, the U.S. Dollar fell while Euros and Pounds rose


On Friday, the U.S. dollar fell while Euro and Pound rose

On Friday, the U.S. dollar fell against the Sterling. After volatile trading the previous session, the latter surged ahead. On Thursday, Britain published a new budget plan that included spending cuts and tax increases. Despite the losses, the greenback still managed to post its biggest weekly gain in a single month. Federal Reserve officials stated that they intend to increase U.S. interest rate more than the forex markets anticipate.

Several officials commented about the Fed’s commitment to raising interest rates, with St Louis Fed President James Bullard being the last. He stated that even with a dovish view, the funds’ rate needs to increase to at least 5-5.25% to hinder soaring inflation, from 3.75-4% currently. Bullard said that the agency might need a 7% increase if it receives more pessimistic news reports. The forex markets predicted that U.S. rates would be at 5% in June 2023.  

The dollar was trading at around 140.27, a steady rate against the Japanese Yen. The index was at 106.75, however, on Friday. Compared the last week, the dollar index gained almost 0.4% this week, recovering some losses after last week’s 4% plunge. The…



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