AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

LONDON: The US dollar eased from a 2-1/2-month high versus the yen on Friday and looked set for its first weekly loss since January against major peers as traders tried to gauge the path for Federal Reserve policy.

The yen, though, which is particularly sensitive to US-Japanese long-term interest rate differentials, threatened to extend its recent losing streak to seven weeks, even as it gained strength on Friday with 10-year US yields retreating from a nearly four-month high close to 4.1%.

Cryptocurrencies took a beating as the crisis engulfing Silvergate worsened, with industry heavyweights including Coinbase Global and Galaxy Digital dropping the lender as their banking partner.

The dollar index, which measures the currency against the yen, euro and four other major peers, eased 0.24% to 104.71, from as high as 105.36 at the start of the week, which was its strongest level since Jan. 6. Since last Friday, the index has slipped 0.5%.

Taking some steam out of the dollar and the breathless advance in US yields were comments from Fed policymakers, including Atlanta Fed President Raphael Bostic who said that “slow and steady is going to be the appropriate course of action,” despite new labour figures adding to the run of strong data of late.

“Yesterday’s Fed speakers – Collins, Waller and Bostic all seemed content with 25bp hikes for now,” said Mizuho senior economist Colin Asher in a note.

“Most noted a possible need to push rates higher if the data continue to come in hot – suggesting data dependence,” Asher added.

Analysts polled by Reuters said recent dollar strength is temporary, and the currency will weaken over the course of the year amid an improving global economy and expectations the Fed will stop hiking interest rates well ahead of the European Central Bank.

“A lot of the dollar strength seen in February has probably run its course now,” said Michael Brown, market analyst at TraderX.

“I wouldn’t be surprised to see some consolidation until (Fed Chair) Powell speaks next week and the jobs report on Friday, with the bar for significant further gains in the dollar quite high at this point,” Brown added.

The Bank of Japan (BOJ), meanwhile, is expected to start to dismantle extraordinary stimulus measures some time after Governor Haruhiko Kuroda retires next month.

Tokyo inflation data for February exceeded the BOJ’s target for a ninth month, but the core measure did decelerate from a 42-year high.

The dollar eased 0.33% to 136.32 yen, after climbing to 137.10 overnight, the highest since Dec. 20. For the week, the dollar is just slightly above flat, but any gain would preserve its win streak since mid-January.

The euro rose 0.18% to $1.0616, after climbing off a nearly two-month low of $1.0533 at the start of the week. Since last Friday, it is up 0.7%.

Dollar squeezed as inflation drives up euro

Sterling added 0.34% to $1.1988, on track for a 0.4% weekly rise.

The Aussie strengthened 0.48% to $0.6762, putting it up 0.54% for the week.

Bitcoin slid 4.5% to $22,403, and earlier touched a 2 1/2-week low at $22,000.

Ether declined 4.7% to $1,570.30 after touching $1,543.60, also a first since mid-February.

Comments

Comments are closed.