Thursday’s rally in world markets, including stocks, bonds and commodities, showed that investors remain eager to buy assets at the first sign of an end to the war in Ukraine.
“This week has shown the market’s appetite to add risk back into portfolios now that the geopolitical backdrop has stabilized a bit,” said Simon Harvey, head of currency research at Monex Europe.
The euro was down 0.5% at $1.1037 but up 1.52% for the week, on track for its biggest weekly rise since early February, when European Central Bank President Christine Lagarde first signaled that interest rates will rise in the eurozone in 2022.
The dollar index was up 0.4% at 98.36, after being down every other day of the week, and headed for a 1% loss in the period.
“The dollar seems to be bottoming out, at a time when the market is pricing in Fed hikes, so the key will be inflation: if it continues to surprise to the upside, the question will be whether the Fed gets even more aggressive.” said Shinichiro Kadota, a currency strategist at Barclays in Tokyo.
The yen was hovering near its lowest level in six years after the Bank of Japan left its monetary policy unchanged on Friday, as expected, making it an exception among central banks in the developed world. that are abandoning emergency measures due to the coronavirus pandemic.
Cryptocurrencies were generally quiet, with bitcoin and ether down 1.5% and 1% respectively.
Source: Ambito
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