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The dollar stabilized today, Friday, after rising in the previous session, as traders analyze a cluster of central bank interest rate hikes and the possibility of continuing to increase borrowing costs for an extended period.
And the euro stood against the dollar at 1,063 dollars. This came after yesterday’s 0.5% drop on Thursday after the European Central Bank raised interest rates, indicating that the hike is far from over. This has raised concerns about potential damage to the global economy and has pushed investors towards the dollar as a safe haven.
Hawkish statements from central banks have prompted traders to reconsider their bets that the damage caused by high interest rates could soon end. This led to a massive sell-off in global stocks and European bonds on Thursday and Friday, supporting the dollar and putting pressure on riskier currencies.
Against the Japanese yen, the dollar fell 0.49% today, Friday, to 137.08. It fell 0.07% against the British pound, which was trading at $1.219.
The dollar index, which measures the US currency’s performance against six major currencies, was roughly stable at 104.48, after rising more than 0.9% on Thursday.
The index is up about 9% this year as the Fed sharply hiked interest rates, pulling money into dollar-denominated bonds.
