© Reuters.

By Gina Lee

Investing.com – The dollar was down on Friday morning in Asia, set for its first weekly decline since the start of September. It retreated from a one-year high as investors focus on when the U.S. Federal Reserve will start to hike interest rates.

The that tracks the greenback against a basket of other currencies inched down 0.02% to 93.938 by 12:54 AM ET (4:54 AM GMT).

The pair was up 0.27% to 113.97.

The pair inched up 0.07% to 0.7420 and the pair was up 0.28% to 0.7055.

The pair inched down 0.04% to 6.4356 while the pair inched up 0.10% to 1.3687.

Improving risk sentiment, which boosted global stocks, commodity prices, and bond yields, also weighing on the safe-haven dollar. It only maintained the momentum of the past five weeks against the yen, its fellow safe haven.

“We end the week with risk flying. Equities are going up hard, and the yen has no place as a hedge,” because it would just drag on overall portfolio performance, Pepperstone head of research Chris Weston said in a note.

The U.S. currency had rallied since early September 2021 on expectations the Fed would begin asset tapering earlier than expected as the economic recovery from COVID-19 continues and energy prices continue to climb.

Minutes from the central bank’s latest meeting that took place on Wednesday said that that asset tapering is likely to begin in November 2021 but that officials remain sharply divided over inflation. Money markets are now pricing in about 50/50 odds of a 25-basis point rate hike by July 2022.

The dollar index is “looking a little shaky, but any slippage should prove modest” with Fed asset tapering now imminent, Westpac strategists said in a note. Any dips in the index should be limited to 93.70, the note added.

U.S. data, including as well as the and indexes, will be released later in the day. This follows data released on Thursday that showed that the rose 0.5% month-on-month in September, and a lower-than-expected 293,000 were filed throughout the week.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link