India's First International News Journal

22.1 C
Tuesday, March 28, 2023

The inaugural weekly diminution of the dollar since January…and analysts divulge their prognostications for the currency in 2023.

The dollar retreated from the highest level in two and a half months against the yen today, Friday, and headed towards recording the first weekly loss since January against other major currencies, as dealers try to determine the course of monetary policy of the Federal Reserve (US Central Bank).

The yen, which is particularly sensitive to long-term interest rate differentials between the United States and Japan, threatened to extend its weekly losing streak to seven weeks, even as it gained momentum on Friday as 10-year US Treasury yields fell from their highest level in nearly four months, according to Reuters. .

And the statements of Rafael Bostick, Chairman of the Federal Reserve Board in Atlanta, led to the dissipation of some of the strength of the dollar and the rise of Treasury yields, as he said last night that "Slow and steady will be the appropriate course of action"though new employment data added to a string of strong data recently.

The dollar index, which measures the performance of the US currency against the yen, the euro and four other major currencies, fell 0.11% to 104.85, from the high level of 105.36 recorded a few days ago, which is the highest level since the sixth of January. It has decreased since last Friday by 0.36%.

Analysts polled by Reuters said the dollar’s recent strength is temporary, and the currency will weaken throughout the year as the global economy improves and the Fed is expected to stop raising interest rates much earlier than the European Central Bank.

Reuters added: The Bank of Japan is also expected to start canceling exceptional stimulus measures after Governor Haruhiko Kuroda retires next month.

Tokyo inflation data for February exceeded the BoJ’s target for the ninth month, but the core gauge slowed from a 42-year high. The dollar fell 0.15% to 136.575 yen, after rising to 137.10 overnight, the highest level since December 20. The euro rose 0.08% to $1.0606. Since last Friday, it has advanced 0.59%.

For latest updates and news follow The Eastern Herald on Google News, Instagram, Facebook, and also on Twitter.
Click here to show your support.
Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on

Public Reaction



Read More