Dollar on course for 2nd straight weekly gain;Pound slips as BoE keeps rate unchanged



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Dollar on course for 2nd straight weekly gain;Pound slips as BoE keeps rate unchanged

On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies, has been well en-route to report a second straight week of percentage gain, as a closely monitored US employment report scheduled to be released later in the day could alter the US Fed’s timing for a potential rate-hike amid a blistering upsurge in inflation indicators.

Apart from that, the British Pound appeared to be headed towards its worst intra-week plunge in nearly three months, as the BoE (Bank of England) had unprecedentedly decided to keep its benchmark borrowing cost unchanged, eventually prompting investors to jump on the bandwagon of a mass-scale sell-off wave.

Apart from that, a remark from the ECB (European Central Bank) President Christine Lagarde that a rate-hike would highly unlikely to take place in 2022, added to a bearish wave in the bloc’s common currency euro, strengthening the greenback further.

Nonetheless, US Fed Chair Jerome Powell also had pushed back on Wednesday against growing market bets that a rate-hike could take place as early as between mid-2022 and late-2022.

US Dollar set to post second successive weekly gains

Citing statistics, as of Friday’s midday Asia-Pacific trading hours, the US Dollar Index (DXY) measured against a basket of six major currencies on an average, remained flatlined at 94.31 after surging more than 0.5 per cent overnight, while the US Dollar Index added 0.21 per cent this week thus far.

In tandem, pound was little changed after tumbling as much as 1.36 per cent on Thursday, down about 1.34 per cent in the week, while the bloc’s common currency euro was trading at $1.1552 after falling 0.49 per cent in previous session.

Besides, the safe-haven Japanese Yen was little changed after posting a loss of 0.22 per cent to 113.78 yen per Dollar on Thursday, while commodity-linked Aussies stayed mostly dithered after beating a hasty retreat of 0.67 per cent to $0.7423 in the previous session against its American peer.