Forex
The dollar prepares to end the week in plus against the euro and yen
The dollar gained against the euro and the yen on Friday night and could also show gains against both currencies at the end of the week, trading data show.
The euro-dollar exchange rate was down to $1.0854 from last week’s closing level of $1.0914, while the dollar-yen exchange rate was up to 135.62 yen from 134.54 yen. And the dollar index (the exchange rate against a basket of currencies from six U.S. trading partners) was up 0.54%, to 102.61 points.
The euro was falling against the dollar for the second day in a row, and it had already lost 1.4% since the beginning of the week. The yen against the U.S. currency has fallen by 0.5% since Monday. Meanwhile, the dollar index has increased by 1.4%.
This week, investors were assessing data from the U.S., according to which the annual inflation rate in the country in April slowed down to 4.9% from 5% a month earlier. This data may give the markets an insight into the Fed’s future actions.
On Friday, currency traders also paid attention to macro statistics. Thus, the University of Michigan consumer sentiment index, which reflects the degree of household confidence in the U.S. economy, according to preliminary estimates, fell to 57.7 points in May from April’s 63.5 points. Analysts had expected the index to drop only to 63 points.
Earlier, we reported that futures went sharply positive after U.S. inflation data.
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