Dollar eases but logs third straight weekly gains



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Dollar eases but logs third straight weekly gains

On Friday, US Dollar Index (DXY) measured against a basket of six major currencies on an average had edged slightly lower as US consumer sentiment had tumbled to a 10-year low amid a rapid shoot-up in inflation indicators, nonetheless, the greenback had logged its third consecutive weekly percentage gain while wrecking havocs on a number of emerging and developing market currencies.

The US Dollar Index (DXY) opened Friday’s FX market slightly lower following an unprecedented fall in US consumers’ confidence, as a University of Michigan survey data had unveiled that its index for national consumers’ confidence fell to a 10-year low, eventually shedding some of earlier gains in the greenback.

If truth is to be spoken, US Dollar has been dominating both equity, Treasury Yields and FX markets since Wednesday’s flabbergasting US Consumer Price Index (CPI) data that had unwrapped that US CPI, a critical gauge to inflation, had hit a 31-year peak on October, raising bets that the US Federal Reserve would be prodded to raise interest rates earlier-than-anticipated.

US Dollar dips marginally, but posts weekly gains

Citing statistics, on Friday’s FX market wind-down, the US Dollar Index (DXY) fell 0.06 per cent to 95.09, while the eurozone’s common currency, euro, shared among the bloc’s 19-member stats, indented 0.03 per cent to $1.1446 after hitting an intra-session low of $1.1433, a level never witnessed in roughly sixteen months.

Safe-haven Japanese Yen added 0.16 per cent to 113.87 Yen per Dollar, while Swiss Franc fell 0.11 per cent to $0.9218. Apart from that, British Pound gained 0.33 per cent to $1.3406, while the greenback shed 0.21 per cent against the commodity-linked loony, Canadian Dollar, to $1.2556.

Aside from that, other loonies such as Australian Dollar, widely seen as a proxy to global risk sentiment, jumped 0.37 per cent to $0.7318 against its American peer, while Kiwis added 0.23 per cent to $0.7040.