As investors took profits,US dollar indexFears of slowing global economic growth and expectations of tough monetary policy from the Federal Reserve helped boost demand for the dollar, falling from a 20-year high on Friday.US dollar indexIt rose nearly 5% this month, the best monthly performance in seven years.
ICE, which tracks the dollar against a basket of major currencies, late in New York US dollar index (DXY) fell 0.40% to 103.21, up 1.97% for the week and 4.64% for the month, the largest monthly increase since 2015.
In terms of economic data, the U.S. personal spending in March was higher than expected, and the monthly increase in the PCE price index was the highest since 2005. After the data was released, the dollar once recovered some of its losses.
Fed funds futures predict that by the end of the year, the federal funds rate will rise from the current 0.33% to 2.83%, but some analysts believe that the market has already priced in the news of the Fed’s aggressive tightening policy, which may weigh on U.S. bond yields and the dollar future rise.
China’s Beijing on Friday announced the closure of more businesses and residential areas and stepped up contact tracing to prevent the outbreak from spreading further, while Shanghai has been under lockdown for a month and public dissatisfaction has grown.
Vassili Serebriakov, currency strategist at UBS, said:US dollar indexStronger, mostly related to market concerns about the global cycle, risk aversion is positive for the dollar, but there are some exceptions, such as the dollar againstJapanese Yenexchange rate.
The Bank of Japan reaffirmed its commitment to maintaining ultra-easy monetary policy on Thursday, vowing to defend its yield target with unlimited bond purchases, sparking a fresh waveJapanese Yensell off.
After breaking the 131 mark yesterday (28th),Japanese YenAgainst the dollar, rebounded from a 20-year low on Friday, rising 0.77% to 129.83 Japanese Yendown nearly 6% this month.
As the dollar fell,EURIt was up 0.41% at $1.0541, down 4.5% for the month and its biggest drop since January 2015.
GBPIt was also up 0.94% at $1.2571, down 4.1% for the month, its biggest drop since October 2016.
As of Saturday (30th) Taiwan time about 6:00 Price:
- US dollar indexReport 103.2106. -0.4401%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURAgainst $1.0541. +0.3905%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPAgainst $1.2571. +0.9232%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDAgainst $0.7063. -0.5071%
- dollar againstCanadian Dollars (USD/CAD) exchange rate at 1.2856 per US dollar Canadian Dollars。+0.3983%
- dollar againstJapanese Yen (USD/JPY) exchange rate is quoted at 129.83 US dollars Japanese Yen。-0.7795%