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The dollar stabilized today, Friday, following rising in the previous session, as traders analyze a group of central bank interest rate hikes and the possibility of continuing to raise borrowing costs for a long period.
And the euro settled once morest the dollar at 1.063 dollars. This came following falling 0.5 percent yesterday, Thursday, following the European Central Bank raised interest rates, indicating that the hike is far from over. This raised concerns regarding potential damage to the global economy and pushed investors towards the dollar as a safe haven.
The “hawkish” statements of central banks prompted dealers to reconsider their bets that the damage caused by high interest rates may end soon. This led to a massive sell-off in global stocks and European bonds on Thursday and Friday, supporting the dollar and putting pressure on currencies considered riskier.
Against the Japanese yen, the dollar fell 0.49 percent today, Friday, to 137.08. It fell 0.07 percent once morest the British pound, which was trading at $1.219.
The dollar index, which measures the performance of the US currency once morest six major currencies, remained roughly stable at 104.48, following rising by more than 0.9 percent on Thursday.
The index has risen regarding 9 percent this year as the Fed has raised interest rates sharply, drawing money back into dollar-denominated bonds.
