AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)

TOKYO: The U.S. dollar sank to a one-month low versus major peers on Friday as traders lowered Federal Reserve rate hike expectations amid signs the central bank might slow or even pause its tightening cycle in the second half of the year.

The dollar index , which measures the greenback against a basket of six major peers, fell as low as 101.43 for the first time since April 25. A rally in Asian stocks also sapped demand for the greenback as a haven.

Against the euro , the U.S. currency also slipped to the weakest since April 25 at $1.0765, and dropped to the lowest against sterling since April 26 at $1.2607.

The risk-sensitive Australian dollar rallied 0.51% to $0.7136, while the New Zealand dollar jumped 0.49% to $0.6510.

The dollar index is headed for a 1.5% drop this week, following last week's 1.37% slide. That would be the first two-week decline since the turn of the year.

Against USD: Rupee recovers from intra-day low, closes marginally weaker at 202.01

It reached a nearly two-decade peak above 105 mid-month, but retreated amid signs that Fed tightening may already be slowing economic growth. Treasury yields have also dropped from multi-year highs, further undermining the dollar.

The dollar weakened 0.3% to 126.69 yen , sliding gradually over the past three weeks from a two-decade high of 131.35.

"U.S. inflation expectations have been coming off, so that's contributed to fading expectations for Fed tightening, which has weighed on the dollar, particularly dollar-yen, which is quite sensitive to yield differentials," said Shinichiro Kadota, senior FX strategist at Barclays in Tokyo.

"I think dollar-yen has peaked for now, but medium-term it will depend on inflation."

Minutes from the Fed's May meeting, released Wednesday, showed that most participants believed 50 basis-point hikes would be appropriate at the June and July policy meetings, but many thought big, early hikes would allow room to pause later in the year to assess the effects of that policy tightening.

Better risk sentiment did not help bitcoin however, which slipped 0.9% to around $28,908, continuing this week's gradual decline from the psychological $30,000 level.

Comments

Comments are closed.

SAMIR SARDANA May 27, 2022 11:40pm
With UKR war & 115 USD oil - more nations like Salvador will adopt BTC If Salvadoreans have been stashing USD as a risk hedge - it is not good for the state - as this stash is in cash - & pressures the local exchange & has no productive use With BTC & the circulation of USD,if the USD cash starts circulating,it is good for the nation & the banks,& some of the USD will find its way into the banks,& be used for economic activity. People will take out their hidden USD,buy BTC & SPEND THE MONEY or SPEND THE APPRECIATION IN THE BTC OR THE PROFIT - & that is a gain for the nation.If the banks sell the BTC,then the PHYSICAL DOLLARS,WILL MOVE INTO THE BANK - & THE NATION CAN USE THE USD,NOT TAKE IMF LOANS, Boosting demand for a DIGITAL DOLLAR (BTC),is better than USD.dindooohindoo The rich need a currency ,from the point of safety & risk.If they pile into USD,the local FX will crash.If they exit Salvador,business & employment will collapse.
thumb_up Recommended (0)