The dollar is on track to gain for the fourth consecutive week

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date of publication:
November 19, 2021 11:57 GMT

Update date: November 19, 2021 13:35 GMT

The dollar is set for a fourth consecutive week of gains, against its major rivals on Friday.

Traders are betting that US interest rates will rise faster than expected amid rising inflation worldwide.

The euro was one of the biggest losers against the dollar, and is on track to fall about 1% this week, with European Central Bank President Christine Lagarde opposing expectations of monetary tightening in the eurozone.

Lagarde reiterated her stance on Friday, saying the European Central Bank should not tighten monetary policy because it could stifle the recovery.

The euro was last down 0.5% to $1.13195.

And the dollar index, which measures the performance of the US currency against a basket of 6 major currencies, shows that it is on track to achieve weekly gains of about 0.9%.

The dollar rose 0.4% on the day, to 95.899, near 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 battled a rise in coronavirus cases and economic data was mixed.

The Japanese yen fell slightly against the dollar after the Japanese government unveiled a new stimulus package worth 55.7 trillion yen, equivalent to about 490 billion dollars.

The dollar was last up 0.2% against the yen to 114,490 yen.

The British pound gave up some of its recent gains, declining 0.4% at $1.34440.

In addition, the price of the cryptocurrency bitcoin fell below $60,000, on its way to its worst week in 6 months, and recorded in the latest trading around $57,500.

On Thursday, the dollar retreated from its highest level in 16 months, as investors assessed the latest rise in the US currency and whether it had risen too much.

The dollar index, which measures the performance of the US currency against a basket of six currencies, recorded its highest level since mid-July 2020, on Wednesday at 96.226.

And in the latest transactions, it amounted to 95,553, down 0.272 percent.

And US data recently showed that inflation rose in October, to the highest level since 1990.





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