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The global dollar is heading for its first weekly decline of 2024, what happened?

The global dollar is heading for its first weekly decline of 2024, what happened?
February 23, 2024 – 10:27

This year, the dollar is showing a rebound supported by strong economic data and statements from Federal Reserve officials indicating that the fight against inflation is not over.

He dollar global is on track to experience its first weekly decline in 2024 as investors take a breather after declining de expectations of future rate cuts by the Federal Reservewhich drives the greenback higher.

Meanwhile, the yen weakens and is heading for its fourth consecutive weekly decline, as investors look for better returns in different marketsbetting that rates in Japan will remain near zero for an extended period.

This year, the dollar is showing a rebound supported by strong economic data and statements from Federal Reserve officials indicating that the fight against inflation is not over yet, reinforcing expectations that rate cuts could be delayed until June or later in the year.

Dollar vs. other currencies

The dollar index, which evaluates the performance of the US currency against a basket of six major currencies, registered an increase of 0.06%, reaching 103.96, but it is on track for its first weekly decline, 0.28%, since late December.

The next key report that could offer more clues on US monetary policy is the Personal Consumption Expenditure (PCE), an inflation indicator preferred by the Federal Reservescheduled for next week.

The euro remains stable, trading at $1.0823 against the US dollar. As for the yen, it is the G10 currency that has the worst performance this year, with a drop of 6.3% against the dollar, while the dollar leads in terms of performance.

During the week, the yen lost 0.8% against the euro, reaching its lowest level in three months on Thursday, at 163.45 units per euro. In contrast, the dollar gained 0.15%, trading at 150.75 yen at the end of the week.

The Chinese yuan is showing stability after the Lunar New Year holiday, barely moving this week at 7.1959 units per dollar, despite significant cuts in Chinese mortgage rates.

Source: Ambito

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