Home NewsForex Market News (New York) Investors turned to risky currencies, DXY fell to a new low in nearly three months, and fell 4% on a weekly basis | Anue Juheng

(New York) Investors turned to risky currencies, DXY fell to a new low in nearly three months, and fell 4% on a weekly basis | Anue Juheng

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(New York) Investors turned to risky currencies, DXY fell to a new low in nearly three months, and fell 4% on a weekly basis | Anue Juheng


The U.S. dollar index extended its weakness from the previous day and fell to a new low in nearly three months on Friday (11th), as signs of cooling in U.S. inflation raised the possibility of the Federal Reserve (Fed) slowing the pace of interest rate hikes, making investors Have turned to riskier currencies.

In late New York trading, the ICE Dollar Index (DXY), which tracks the greenback against six major currencies, fell 1.68% to 106.39, its lowest level since mid-August. The U.S. dollar fell 4 percent for the week after two consecutive sessions of heavy losses.

Data on Thursday (10th) showed that the US consumer price index (CPI) increased by 7.7% in October, which was not only lower than expected, but also the lowest level since the beginning of the year, while data on Friday showed that consumer confidence in the United States in November was much lower. In line with market expectations and lower than the previous value, but the dollar has little support.

Market strategists believe that the dollar’s strong performance over the past two years has attracted many dollar longs, causing positions to be squeezed, and Thursday’s inflation data allowed most to get out of the market quickly.

The yen rose 1.65% to 138.63 against the dollar, the highest since the end of August, and rose more than 5% this week; the euro rose 1.46% to $1.0357 against the dollar, almost closing at the high since early July, a weekly up 4%.

Jim Cielinski, global head of fixed income at Janus Henderson Investors, sees the U.S. dollar as one of the most overvalued markets and has likely peaked.

But strategists warned that dollar bears remain vulnerable to a short-term rebound. Marc Chandler, chief market strategist at Bannockburn Global Forex, cautioned that investors should not continue chasing the dollar amid wild swings.

The more risk-sensitive Australian dollar was up 1.4% at $0.6711 and the New Zealand dollar was up 1.6% at $0.6120, both climbing to more than one-month highs. It rose more than 3% for the week.

Risk appetite was also boosted by China’s announcement to ease some of its epidemic prevention restrictions, with the offshore yuan up 0.9% to 7.0885 per dollar.

China’s National Health and Construction Commission announced on Thursday that it would relax a series of anti-epidemic measures, including shortening the quarantine period for those entering quarantine and close contacts to “5+3”.

Meanwhile, the British pound rose 1.1% to $1.1842 and was up more than 4% for the week. Earlier data showed that the UK’s Q3 gross domestic product (GDP) fell by 0.2% quarterly. Although the contraction was lower than expected, it still faces the risk of a long-term recession.

The Swiss franc was higher and USD/CHF dipped 2.3% to 0.9408 francs after the Swiss National Bank said it was ready to take the necessary steps to stabilize prices and keep inflation down to its 0%-2% target range.

The cryptocurrency market is volatile, and FTX Token is unable to stop the recent tragic decline. It fell another 31% before the deadline, and Bitcoin also fell about 7% to $16,677. FTX Group earlier announced that it had filed for bankruptcy in the United States, and CEO Sam Bankman-Fried had resigned.

As of Saturday (12th) Taiwan time about 6:00 Price:

The dollar index was at 106.3887. -1.7% The euro against the US dollar (EUR/USD) was quoted at $1.0356 per euro. +1.4498% GBP/USD (GBP/USD) was quoted at 1.1839 yuan per pound. +1.0844% The Australian dollar against the US dollar (AUD/USD) was quoted at 0.6706 AUD to 1 AUD. +1.3297% The U.S. dollar against the Canadian dollar (USD/CAD) traded at 1.3260 Canadian dollars. -0.4505% The U.S. dollar was quoted at 138.66 yen against the Japanese yen (USD/JPY). -1.6247%

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