© Archyde.com. US one-dollar bills in Washington – Photo from Archyde.com archive.
From Amanda Cooper
LONDON (Archyde.com) – Friday headed for its longest weekly losing streak in nearly three years, as traders fueled expectations that the US Federal Reserve was regarding to end its rate-raising cycle following signs that inflation may cool.
Thursday’s data showed US wholesale prices, which are measured by the producer price index, fell by the most in nearly three years last month, a day following inflation data indicated a moderation in consumer prices.
The dollar index, which tracks the greenback’s performance once morest six other currencies, fell to nearly a one-year low of 100.78 points.
It settled in the latest transactions at 101.0 points, and is heading for a weekly decline of more than one percent, which is the largest decline since January. This would mark the fifth straight week of losses, the longest losing streak since July 2020.
The pound rose to a ten-month high of 1.2545 once morest the dollar earlier on Friday and was last down 0.3 percent at $1.2492. It fell 0.3 percent to 88.48 pence, once morest .
Financial markets believe by 69 percent that the Federal Reserve will raise interest rates by 25 basis points next month, despite expectations that a series of cuts will occur from July until the end of the year, bringing interest rates to 4.3 percent in December, compared to between 4.75 and 5 percent now. .
Atlanta Federal Reserve Bank President Rafael Bostick told Archyde.com in an interview on Thursday that another 25 basis point increase would allow the Fed to end the rate hike cycle with some confidence that inflation will return to its 2 percent target.
Meanwhile, an unexpected rise in Chinese exports coupled with a strong March employment report in Australia sent the Australian dollar heading for a 1.5% gain this week. It was last down 0.1 percent at 0.6775 once morest the dollar.
The New Zealand dollar fell 0.3% to $0.6281, following jumping 1.3% on Thursday.
It settled at 132.59 once morest the dollar, while outside China it rose 0.3 percent to 6.8515 once morest the dollar.
(Reporting by Doaa Mohamed and Noha Zakaria for the Arabic Bulletin – Edited by Yasmine Hussein)
