The dollar rebounded from recent losses against a basket of major currencies on Friday, but remained down 0.9 for the week after a series of hawkish comments from Federal Reserve officials said the central bank should take more aggressive steps to fight inflation %, while the yen hit a fresh six-year low against the dollar.
In late New York trading, the ICE U.S. Dollar Index (DXY), which tracks the U.S. dollar against a basket of major currencies, rose 0.26% to 98.23, with a high of 98.62 and a low of 97.84, down 0.9% for the week.
St. Louis Fed President James Bullard has called for a sharp rise in the benchmark interest rate above 3 percent this year, arguing that the Fed should act aggressively to help ease the heavy burden of inflation on American households.
The Fed announced a one-yard rate hike this week, and Bullard was the only FOMC voting member to vote against it at the meeting, as he favored two rate hikes at a time.
On the same day, Fed Governor Christopher Waller also expressed support for the Fed to take more aggressive action, including one or more rate hikes by two yards, and reducing bond holdings as soon as possible.
Joe Manimbo, senior analyst at Western Union Business Solutions in Washington, pointed out that the hawkish comments from the Fed have injected momentum into the dollar, highlighting the prospect of a more hawkish central bank policy, but he also said that while the Fed has been strong this week, overall The Fed’s rate outlook remains in line with market expectations, he said.
The dollar rose 0.47% to 119.14 yen, the yen hit a six-year low. The Bank of Japan (BOJ) kept its ultra-loose monetary policy unchanged on Friday, as expected, as inflation in Japan remained subdued.
After investors assessed a series of developments in Russia and Ukraine, the euro fell 0.35% to $1.1050 against the dollar, up 1.25% for the week, the largest weekly gain since the first week of February.
International oil prices continued to rise, driving the Australian dollar and New Zealand dollar, which are sensitive to commodity price movements, higher. The Australian dollar rose 0.5% to US$0.7410 against the US dollar, rising for four consecutive days. The New Zealand dollar rose 0.38% to US$0.6904.
The dollar rose 0.08% against the offshore yuan to 6.3656 yuan. U.S. President Joe Biden and Chinese President Xi Jinping held a video call on Friday to discuss the Russia-Ukraine war and block Chinese military aid to Russia.
The Russian ruble fell 1.6 percent to 104.8 rubles per dollar. Russia’s central bank held rates at 20 percent on Friday after a major move last month to raise interest rates and said it would launch an asset-purchase program to buy federal government bonds (OFZ).
In cryptocurrencies, bitcoin traded at $41,861, up 2.8% in 24 hours, and peaked above $42,000 this week. Ether was at $2,954.7, up 5.3%.
As of Saturday (19th) Taiwan time about 6:00 Price:
The dollar index was at 98.166. +0.25% EUR/USD (EUR/USD) is quoted at 1.1050 USD. -0.3697% GBP/USD (GBP/USD) was quoted at $1.3180. +0.2205% The Australian dollar against the US dollar (AUD/USD) was quoted at $0.7415 to 1 Australian dollar. +0.5560% The US dollar against the Canadian dollar (USD/CAD) was quoted at 1.2602 Canadian dollars per US dollar. -0.1585% The U.S. dollar against the Japanese yen (USD/JPY) was quoted at 119.17 yen per dollar. +0.4806%