Dollar-Forex hits 16-month high as inflation fears make it best week since June – News Couple

Dollar-Forex hits 16-month high as inflation fears make it best week since June

TOKYO (Reuters) – The U.S. dollar headed for its best week in nearly five months against its major peers on Friday, amid bets on previous interest rate hikes by the Federal Reserve after data this week showed the fastest U.S. inflation in three decades. . The dollar index, which measures the currency against six peers, hit a 16-month high of 95.266, on track for a 1.05% gain this week, the most since the period ending June 20. The euro fell again to 16 months. Low at $1.1436, the British pound fell to $1.3354, the weakest level this year. “We are wrapping up the week with a completely blown US dollar,” Chris Weston, head of research at brokerage Pepperstone, wrote in a note to a client. “I see signs of an impending bounce in the US dollar, but with this flow, dips are a buying opportunity.” Data on Wednesday showed a broad-based rise in US consumer prices last month at the fastest annual pace since 1990, calling into question the Federal Reserve’s claims that price pressures will be “temporary” and fueling speculation that policy makers will raise interest rates sooner than before. previously believed. . Markets are now setting a price for the first rate hike by July, and another high probability by November. “We continue to believe that market pricing has room for more stability, especially in 2023, which could further support the US dollar,” Kimberly Mundy, CBA strategist, wrote in a client note. By contrast, “interest rate futures are very aggressive in pricing (ECB) rate increases for next year bearing in mind that ECB policy makers are not budging from their very cautious guidance,” giving scope for further euro weakness. , she said. Traders will be watching inflation readings from a University of Michigan survey, along with JOLTS job data later in the day. New York Fed President John Williams speaks at a webinar and is likely to provide a glimpse into how policymakers are reacting to the fiery prints of inflation. ECB Chief Economist Philip Lane also speaks in a panel discussion at a separate event. The dollar rose to 114.30 yen on Friday, the strongest level since November 1 and touched a three-week high of 0.92295 Swiss francs. The Swiss Franc is still needed as a safe investment as market uncertainty rises due to the ongoing COVID-19 pandemic, Swiss National Bank board member Andrea Michler said at an event late Thursday. The risk-sensitive Australian dollar fell to as low as $0.7277 for the first time in more than a month. The New Zealand dollar fell to $0.69965, a level not seen since October 14. Ether was trading at around $4,800, in sight of the all-time high of $4,868.79 that reached on Tuesday. ================================================== == ====== Coin quote prices at 0553 GMT Description RIC Last Close US Pct Change YTD Pct High Bid Low Previous Change Session EUR/USD 1.1443 USD 1.1450 -0.05% -6.33% +1.1453 +1.1436 USD / Yen 114.1750 113.9800 +0.26% + 10.64% +114.2900 +114.2500 EUR / USD Yen / Swiss 0.9221 0.9210 + 0.14% + 4.24% + 0.9229 +0.9215 GBP / USD 1.3367 1.3363 + 0.04% -2.14% +1.3372 +1.3354 / CAD 1.2584 1.2582 + 0.02% – 1.18% + 1.2600 +1.2582 AUD / USD 0.7292 0.7291 + 0.01% -5.21% + 0.7296 + 0.7277 NZD 0.7009 0.7022 -0.18% -2.40% +0.7023 + 0.6997 USD / 0.6997 All Locations Tokyo Europe Spots Volatilities Tokyo forex market information from the Bank of Japan (Additional reporting by Kevin Buckland; Editing by Richard Boleyn)

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