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Post: Dollar is rising but heading for its biggest weekly drop in 4 months

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LONDON (Reuters) – The dollar rose on Friday but headed for its biggest weekly drop in nearly four months after traders halted U.S. rate hikes amid the Federal Reserve’s ability to slow or stop a cycle. of monetary tightening in the second half. Year. The reduction of EE treasury income. UU., the weak economic data and the cautious comments of some politicians of the Federal Reserve have increased the possibilities that the gains of the dollar, based on the high rates of interest, have been stagnant for the time being. The dollar index, which measures the effectiveness of the US currency against a basket of six major currencies, fell to its lowest level since April 25 at 101.43. On a weekly basis, the index fell 1.3 percent, the biggest weekly drop since the first week of February. It peaked nearly two decades earlier at 105 earlier this month but has since retreated on weak economic data. The main beneficiary of the dollar’s fall is the euro, but that momentum has also been dented as investors believe many expected European Central Bank interest rate hikes are already projected at current levels. The euro hit an all-time high against the dollar and traded at $1.0765. The British pound was trading at $1.2666. The digital currency did not benefit from improving risk aversion and fell 1.62% to around $28,710, continuing its gradual decline to $30,000 this week. The risk-sensitive Australian dollar was up 0.6% at USD0.7142, while the New Zealand dollar was up 0.65% at USD0.6520.

Source: Al Ittihad

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