Dollar falls for fourth day on U.S. rate views as yen jumps


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LONDON – The U.S. dollar depreciated for the fourth consecutive day on Friday to a sharp drop in the last two months as investors noted that much of the latest information from the US central bank had already been purchased.

With hedge fund positioning very close since the beginning of 2020 and rising inflation in the US below 2%, a sharp drop in previous Federal Reserve competitions, investors have benefited from long-term dollar betting.

On Friday, the greenback dropped 0.2% to 94.62 against the stock market, the lowest since early November. For the week, it is expected to weaken 1.11%, the lowest decline since December 2020. On Thursday, it fell below the 100-day moving average for the first time since June 2021.

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HSBC analysts say markets are deeply concerned about the Fed’s demands for economic growth, ranging from declining and declining central bank financing to rising interest rates.

“In other words, the market does not know whether this is good or bad for the USD,” he said.

Against its rivals, the loss of the dollar was significantly higher against the Japanese yen and the Chinese yuan, while falling 0.4% and 0.3% respectively.

Although the security yen benefited from a weakening of global commodities, Reuters reported that Bank of Japan was preparing to launch a telegraphing increase that sent the Australian dollar and US Treasury yields lower, which also weighed heavily on the greenback.

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Prices have risen sharply this week with US interest rates set to rise this year.

But past yields have dropped slightly over hawkish comments from Fed officials on bank cuts and future Fed fund indications that US interest rates will reach mid-2023.

The euro has risen more than 1% per week so far and has risen from the national level since late November, the highest hits since Nov. 11 for $ 1,1483. Placing data on the IG trading platform showed that traders were not involved.

Sterling found, in response to a political crisis that threatened Prime Minister Boris Johnson, with the pound moving to a fourth consecutive weekly gain of more than 0.5%. It was last sold at $ 1.3730.

(Reports by Saikat Chatterjee; Additional reports by Tom Westbrook in Sydney; Edited by David Clarke)

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