Dollar ends lower, but still scores for best year since 2015



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Dollar ends lower, but still scores for best year since 2015
Dollar ends lower, but still scores for best year since 2015

On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies on average fell 0.4 per cent, however, the greenback has still reported its best annual percentage gain against a number of major and emerging market currencies since 2015.

As of Friday’s, late-afternoon US trading, US Dollar Index (DXY) secured a 7.9 per cent annual percentage gain against a basket of currencies, marking off the largest annual jump in seven years. Nonetheless, in the day’s downswing in US Dollar was largely catalysed by worries over an impending recession in the US with uncertainties flying higher over rate-decision of the US Fed.

On top of that, as a number of countries appeared to be mulling a travel restriction for travellers from China, the US Dollar outlook dampened and eventually led to a tottering of the greenback. Meanwhile, addressing to growing investors’ angsts over a weaker growth momentum next year alongside an intransigent rise in inflation indicators, a chief currency analyst at ForexLive, Adam Button said, “I think everyone is struggling with the question of whether the big problem in 2023 will be weak growth or stubborn inflation.

If it's weak growth, the U.S. dollar will fall. If it's high inflation, then the U.S. dollar will rally”.

US Dollar falls, but reports largest annual gain since 2015

Citing statistics, in the day’s FX market winddown, the US Dollar Index (DXY) measured against a basket of six major currencies on an average fell 0.4 per cent to 103.53, falling nearly 8.22 per cent year-to-date, while the bloc’ common currency Euro added 0.4 per cent to $1.0707, however, had shrugged off 5.91 per cent over the year.

Besides, Yen gained 1.63 per cent to $130.86 yen per Dollar, however, the Japanese yen which had lost its safe-haven status following the Abenomics era, fell 13.67 per cent over the year with inflation flying higher. Besides, safe-haven Swiss Franc wrapped up the day nearly flatlined against the US Dollar to $0.9234 and rose 1.17 per cent over the year, while Pound sterling added 0.10 per cent to $12066.

Nonetheless, Pound lost nearly 11 per cent against its American counterpart. Risk-sensitive Aussies added 0.44 per cent at the final trading day of the year to $0.6777, while Canadian Dollar fell 0.11 per cent to $1.3564 against its American counterpart.

Over the year, Aussies lost 6.36 per cent and Canadian Dollar shrugged off 7.28 per cent, respectively against their American peers.

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