Around 9 p.m., the euro lost 0.43% to 1.0542 dollars while it appreciated slightly earlier in the session.
The dollar rose once more on Friday once morest the euro and the main currencies, playing its role of safe haven, while the New York Stock Exchange, once more in decline, entered bear market territory.
Around 7:00 p.m. GMT, the euro lost 0.43% to 1.0542 dollars while it appreciated slightly earlier in the session.
The Dollar index, which compares the greenback to other major currencies, advanced 0.50% to 103.23 points. The dollar hit a 20-year high late last week, before retreating sharply. Over the week, the American currency remains in decline.
Its rise on Friday followed the opposite curve to that of shares on Wall Street, which following an attempted rebound at the opening, fell once more, dragging the S&P 500, an index more representative of the American market, into the “bear market” zone. or bear market, that is to say 20% below its peak at the start of the year.
Still, the trajectory of the American currency raised questions.
“There is a big question for the foreign exchange market: has the rise of the dollar reached its end or does it still have a long way to go?” Asked George Saravelos, analyst at Deutsche Bank.
Currency traders are divided on the issue. In particular, Deutsche Bank believes that “with Fed (Federal Reserve) rate hike expectations reacting to indicators on the US economy and other major central banks accelerating rate hikes, the conditions are in place for currency adjustment”.
The dollar has been boosted in recent months by the Fed’s desire to tighten its monetary policy quickly, while other central banks, in Europe in particular, have to spare economies affected by the war in Ukraine and by the Covid-19 in China.
Not encouraging economic indicators in the United States this week, and a more determined message from members of the European Central Bank (ECB), contributed to the greenback’s decline over the week (-1.38%).
But “for now, we see the dollar’s pullback as a temporary correction rather than a long-term trend change,” said MUFG analyst Lee Hardman.
“In the short term, the market will remain volatile: it is difficult for the euro to register strong gains” given the lack of appetite for risk among investors “even if the specter of a recession hangs over the United States- United” and weighs on the dollar, summarizes Antje Praefcke, analyst at Commerzbank.
