Dollar on track for fourth straight week of gains By Reuters

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© Reuters. An employee at an exchange office in the Turkish capital, Ankara, counts $100 bills on November 11, 2021. Photo: Gala Girduan/Reuters.

LONDON (Reuters) – It is set for a fourth straight week of gains against its major rivals on Friday, as traders bet that US interest rates will rise faster than expected amid rising inflation worldwide.

It was one of the biggest losers against the dollar, and is on track to fall about 1 percent this week, with European Central Bank President Christine Lagarde opposing expectations of tighter monetary policy in the euro zone.

Lagarde reiterated her stance on Friday, saying the ECB should not tighten monetary policy because it could stifle the recovery. And the euro fell in the latest trading 0.5 percent to 1.1395 dollars.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, shows that it is on track to achieve weekly gains of about 0.9 percent.

The dollar rose 0.4 percent on the day to 95.899, close to a 16-month high of 96.266 on Wednesday.

Expectations are growing that the dollar could strengthen in the coming year.

US retail sales beat expectations this week after unexpected data for higher inflation last week. Meanwhile, governments in Europe are grappling with a spike in coronavirus cases and economic data has been mixed.

It fell slightly against the dollar after the Japanese government unveiled a new stimulus package worth 55.7 trillion yen ($490 billion). The dollar was last up 0.2 percent against the yen to 114,490 yen.

The pound gave up some of its recent gains and fell 0.4 percent to $1.34440.

The cryptocurrency fell below $60,000, on its way to its worst week in six months, and recorded in the latest trading around $57,500.

(dollar = 114.4500 yen)

(Prepared by Rehab Alaa for the Arab Newsletter)

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