News Tech: The US dollar topped the first week of six declines against its major currencies on Friday, weakening near a one-week low as investors continue to gauge the impact of the cap. beginning of the Federal Reserve’s rate hike cycle this week. The safe-haven greenback also lost ground – while the euro rallied – as traders remained optimistic about an end to the war in Ukraine as talks continue between Moscow and Kyiv, despite progress degree on Thursday being elusive. Sentiment also improved after Russia avoided default on its dollar-denominated debt.
A phone call between US President Joe Biden and Chinese leader Xi Jinping late Friday, with the US warning China not to support Russia, added another layer of geopolitical risk. Meanwhile, the pound rose and continued to hold on to its first winning week in four weeks, overcoming obstacles from dovish comments from the Bank of England following a rate hike in Tuesday’s meeting consecutively on Thursday.
The dollar index pauses on Friday, settling at 98.104 after dropping every other day this week and setting up a 1.03% loss this time around. It slid to 97,724 on Thursday for the first time since March 10. The drop came despite the Federal Open Market Committee raising interest rates on Wednesday and signaling a quarter-point equivalent increase in every remaining policy meeting this year, prompting investors to panic. It is urgent to determine how much monetary tightening the economy can sustain.