The dollar hovered near its highest level in 6 weeks today, Friday, ahead of the release of crucial US jobs data that may provide indications about the path of interest rates in the United States, while the yen jumped, ending a turbulent week marred by ambiguity regarding monetary policy expectations in Japan.
The dollar received support from the demand for safe havens as investors assessed the widespread conflict in the Middle East and its repercussions on the global economy.
The dollar index – which measures the US currency against 6 major currencies – recorded 101.91 points in the latest trading, a level not far from its highest level in 6 weeks at 102.09, which it touched yesterday, Thursday.
The index rose over the course of the week by about 1.5%, its strongest performance since last April.
Details of the performance of major currencies
- The euro settled at $1.102925 after falling for the past five sessions in a row.
- The pound sterling rose 0.2% after Hugh Bell, chief economist at the Bank of England, said that the British central bank should gradually reduce interest rates, after the pound fell 1% after Reuters quoted the bank’s governor, Andrew Bailey, as saying that the Bank of England may reduce interest rates at a rate big.
- Today, Friday, the Australian dollar reached $1.3127, which is close to its lowest level in three weeks at $1.3093 that it touched yesterday, Thursday.
- The yen rose 0.4% to 146.34 against the dollar, recovering from some of the losses it incurred during the week, although it remained near the lowest level in more than 6 weeks at 147.25 yen to the dollar, which it recorded the previous day.
