Several Fed policymakers are expressing uncertainty about whether current rates are high enough to combat inflation.
The British pound is seeing a 0.1% drop to $1.2209, following the report revealing that the British economy is stagnating in the third quarter.
The dollar is on track for its best weekly performance against the yen in the last three months, prompted by comments from the chairman of the Federal Reserve, Jerome Powell and other monetary officials suggesting the possibility of an increase in interest rates.
Several Fed policymakers, including Powell, are expressing uncertainty about whether current rates are high enough to combat inflation. These comments, perceived as a hawkish approach, are driving a rise in Treasury yields and strengthening the dollar.
Thus, this Friday, the dollar is close to its highest level in a year against the yen, reaching 151.43 yen, on track to register a weekly increase of 1.4%, its biggest advance since August.
CMC Markets’ Tina Teng notes: “Powell’s speech is being quite harsh and is greatly affecting confidence“
Dollar vs. other currencies
The weakness of the yen keeps traders on alert about the possibility of intervention by the Japanese government to support the currency, remembering the two actions last year in response to the depreciation of its currency.
The dollar index, which compares the greenback with a basket of six major currencies, registered minimal changes at 105.91 units, on track to close the week with an increase of 0.81%, after having gained 0.39% the previous day.
The euro is little changed, trading at $1.0669 after losing 0.4% on Thursday.
The British pound is seeing a 0.1% drop to $1.2209, following the report revealing that the British economy is stagnating in the third quarter.
Source: Ambito
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