The euro and pound fell sharply against a strengthening dollar on Friday amid continued jitters about banks.
The dollar index was up 0.536% at $103.140, and the euro was down 0.71% at $1.0753.
“For many, many years, whenever there are perceived or real problems that seem to be deep-seated, people turn to the dollar, and I think that’s probably all there is to it at the moment,” said Joseph Trevisani, a senior analyst at FXStreet. .com.
Risk aversion also sent sterling down 0.53% to $1.222 despite data showing the UK economy was set to grow in the first quarter and confidence rising.
The pound had hit a seven-week high of $1.2341 on Thursday in volatile trading after the Bank of England raised interest rates by 25 basis points to 4.25%, but said a surprise resurgence in inflation it would likely fade quickly, stoking speculation that its rate hike cycle is over.
Bank stocks took a hit this month after the sudden bankruptcies of two regional US lenders and the emergency sale of embattled Swiss bank Credit Suisse to rival UBS.
According to Christopher Wong, currency strategist at OCBC, the world of currencies seemed to suggest a risk aversion attack with safe haven proxies like gold and the yen outperforming and most other currencies weaker.
Even so, the Japanese yen only appreciated 0.08% against the dollar, standing at 130.73 per dollar.
Source: Ambito
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