Dollar higher, but nearly four weeks lower thanks to Fed’s accommodative tone by Investing.com
By Gina Lee
Investing.com – The dollar was higher on Friday morning in Asia, but it was forecast for a fourth straight week of losses as the US Federal Reserve sticks to its accommodative monetary policy.
The following the greenback against a basket of other currencies edged up 0.03% to 90.618 at 12:26 p.m. ET (4:26 a.m. GMT).
The pair edged down 0.10% to 108.81. Japanese data released earlier today showed a 2.2% month-over-month increase in March, while the 0.2% year-over-year contraction in April.
The pair was up 0.24% to 0.7782 as the Australian producer price index rose 0.2% and 0.4% in the first quarter of 2021. The pair edged up 0, 11% to 0.7253.
The pair was down 0.04% to 6.4684. China for April was 51.1, while that of 54.9. The for April was 51.9 and is due the following week.
The pair rose 0.08% to 1.3951.
The dollar index (DXY) is expected to end the week with a loss of 0.2% and a loss of 2.8% for the month. The greenback’s losses were the gains of its Canadian counterpart, with the latter hitting a more than three-year high against the US dollar on Friday.
Investors are still digesting the Fed’s latest policy decision, made on Wednesday. Although Fed Chairman Jerome Powell acknowledged the growth of the US economy, he added that there was not yet enough evidence of “substantial progress” towards recovery to warrant a change in policy. .
Optimism that signs of an economic recovery, especially in the labor market, could force the Fed to cut back on asset purchases earlier than expected, led DXY to a five-month high in March 2021.
DXY could attempt a rebound in the next few days as expectations turn to potentially successful payrolls in April next week, but the gains will be short-lived with Fed officials underlining the decidedly accommodative stance of Powell, “Westpac strategists said in a note.
The gauge is likely to drop below 90 in the near term, from 90.6 currently, but “DXY’s downward trend is probably more of an ongoing grind than a sharp setback,” the note added.
Data released Thursday showed the United States was up 6.4% quarter-over-quarter in the first quarter of 2021 and 553,000 were filed in the past week.
The Fed’s position contrasts with that of its northern neighbor. The Bank of Canada has already started cutting back on asset purchases, and the commodity-linked Canadian dollar was further boosted by rising oil prices, which hit a six-week high.
Prices also pushed up the Australian and New Zealand dollars, which are also linked to commodities.
In cryptocurrencies, the ether was just below the all-time high of $ 2,800.89 set on Thursday, due to media reports of the European Investment Bank’s plans to launch a “digital bond” sale on the ethereum blockchain network.
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