He dollar is heading towards a weekly rise against the main currencies, while the yen falls this Fridayahead of a series of central bank meetings long awaited next week, including those of the United States Federal Reserve and the Bank of Japan.
This Friday, the main Japanese companies agree with the unions on a salary increase, the oldest in 33 yearsreinforcing the view that the country’s central bank is about to make a historic turn and abandon negative interest rates.
Investors are closely monitoring decisions by other central banks for signs on how quickly they will cut interest rates after a period of rapid increases to curb runaway inflation. The Bank of England and the Swiss National Bank will also meet next week.
Dollar vs. other currencies
The index dollarwhich measures the price of the US currency against its six main peers, fell 0.1% on the day, to 103.31 points.
Although the Federal Reserve is not expected to change interest rates, this week’s producer and consumer price data, better than expectedhave led operators to curb bets on future cuts. According to CME’s FedWatch tool, markets now give a 59% chance that the Fed will lower rates in June, up from 74% a week earlier.
“While we do not believe developments are sufficient at this time for the Fed to adjust its plans for three rate hikes this year… it is likely to be more cautious about the near-term inflation outlook,” they note in a statement. notes MUFG currency analysts.
The yen falls to 148.725 per dollar and is headed for a weekly drop of 1.1%, the steepest since January.
The Bank of Japan is poised to end eight years of negative interest rate policy, with internal preparations for an exit in the works since Kazuo Ueda took over as BOJ governor, sources familiar with the matter have previously told Reuters. bank thinking.
The euro rose 0.2% to $1.0899. The Council of the European Central Bank began a debate last week on when to reduce its own ratesCouncil member Olli Rehn said Friday. The British pound remains virtually stable at $1.2754.
Source: Ambito
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