During the turbulent foreign exchange market,US dollar indexFriday (14th) rose and closed the week in the red, other major currencies were under pressure. Following the dismissal of UK Chancellor of the Exchequer Kwasi Kwarteng,GBPIt fell 1.4% once morest the dollar.JPYAgainst the dollar, it continued to test a new 32-year low, and its weekly performance was the worst since mid-August.
While the currency market is volatile and full of pressure, the dollar remains a safe haven for investors. ICE, which tracks the dollar once morest six major currencies, is late in New York US dollar index (DXY) rose 0.82% to 113.29, up 0.43% for the week.
U.S. retail sales were unexpectedly flat in September as high inflation and surging interest rates dampened demand for goods, a sign that investors have become more cautious regarding discretionary spending.
On the other hand, the University of Michigan’s consumer confidence index rose further in October and was the highest in six months, but survey director Joanne Hsu believes this is only a temporary improvement, as the consumer expectations index fell 3% from the previous month, inflation , the outlook for the economy and financial markets remains uncertain.
“The question now is: will the Fed hike rates by another 3 in December, retail sales and yesterday’s CPI,” said Erik Nelson, managing director strategist at Wells Fargo Securities. The data shows that it is increasingly likely, which reinforces the dominance of the dollar.”
JPYThe decline is unstoppable, and the exchange rate once morest the dollar fell 1.1% to 148.73 JPYhit a new 32-year low.JPYIt has lost regarding 2.4% once morest the dollar this week, its worst weekly performance since mid-August.
Traders continued to focus on whether Japan would act to stop its currency from falling. Japanese Finance Minister Toshi Suzuki reiterated that the government is ready to take measures to deal with excessively volatile exchange rates.
“We think it’s increasingly likely that the Japanese authorities will act once more to stop the decline,” said Jonathan Petersen, senior market economist at Capital Economics.JPY, we guess they’ll try once more soon. “
Capital Economics expects U.S. bond yields to fall and easeJPYdownward pressure, which is expected to bringJPYOne of the few major currencies to strengthen once morest the U.S. dollar by the end of the year.
GBPIt fell 1.3% to $1.1178, ending a two-day winning streak and still up 0.8% for the week. Britain’s chancellor of the exchequer, Jeremy Hunt, confirmed that he had stepped down at the request of the prime minister and was replaced by former foreign secretary Jeremy Hunt.
The cabinet change comes as British Prime Minister Liz Truss announced that he will implement the previous tax increase policy, which will increase corporate tax by 6% next year, which is expected to bring the UK $18 billion a year.GBPtreasury revenue.
Jane Foley, head of foreign exchange strategy at Rabobank, believes that it will be clear whether the sharp turn in UK fiscal policy and the central bank’s emergency bond-buying reassures investors.But he said there was not enough good news to reverse hisGBPShort-term forecast of the exchange rate once morest the US dollar.
other currencies,EURDepreciated 0.58% once morest the US dollar to $0.9719,AUDIt depreciated 1.62% once morest the US dollar to US$0.6194, both reversing yesterday’s gains.
As of Saturday (15th) Taiwan time regarding 6:00 Price:
- US dollar indexReported 113.2999. +0.7520%
- EURExchange rate once morest the US dollar (EUR/USD) at 1 EURAgainst $0.9719. -0.5627%
- GBPExchange rate once morest the US dollar (GBP/USD) at 1 GBPAgainst 1.1178 yuan. -1.3416%
- AUDExchange rate once morest the US dollar (AUD/USD) at 1 AUDAgainst 0.6194 yuan. -1.6201%
- dollar once morestCanadian Dollars (USD/CAD) exchange rate at 1.3897 per US dollar Canadian Dollars。+1.0911%
- dollar once morestJPY (USD/JPY) exchange rate at 148.72 to 1 US dollar JPY。+1.0523%
