The dollar rose in Asia on Friday morning, but remained near a one-month low. The U.S. Federal Reserve maintained its latest stance in its latest, and disappointing U.S. economic data also hampered the rally of the U.S. currency for a month.
The setback against a basket of other currencies rose 0.11% to 91,970 at 12:34 ET (04:34 GMT). It dropped as low as 91,855 on Thursday, a level not seen since June 29, and would end the week with 1%, the worst weekly performance since early May 2021. The index is also 0.5% lower for the month to so far after its 2.8% rally the previous month.
The pair rose 0.03% to 109.50.
The pair decreased by 0.08% to 0.7389 and the pair by 0.08% to 0.7003.
The pair increased 0.06% to 6.4600 while the pair decreased 0.09% to 1.3948. The pound was near the highest in more than a month, strengthened by the weaker tone of the dollar and a decline in daily COVID-19 cases in the UK
The comments of Fed Chairman Jerome Powell, made when the central bank gave its policy decision on Wednesday, resulted in a downward trend. Powell insisted that interest rate hikes are a long way off ‘and that the labor market still needs to cover some ground’ before asset reduction can begin.
“While the Fed continues to say it is shutting down its money printing program, the Fed’s move to this shift is likely to be slower than previously expected,” said Steven Dooley, Western Union (NYSE 🙂 currency strategist 🙂 , told CNBC.
“The Fed’s caution is seen due to a slowdown in US growth, weakening in inflation and concerns about the COVID-19 Delta variant,” he added.
On Thursday, the dollar was also unable to provide support. Although the US grew a solid 6.5% quarter-on-quarter in the second quarter of 2021, it was lower than both the 8.5% in forecasts compiled by Investing.com and the growth of 6.3 % recorded for the first quarter.
Further data from the US, including the second quarter, and for June and for July, will appear later in the day.
Across the Atlantic, the euro rose to a month-high against the dollar, last trading at $ 1.1886 ahead of a string of data. Second quarter and GDPs next door, and consumer price indices for July as well as the, should be paid later in the day.
In Asia-Pacific, the yuan has recovered most of its losses since Tuesday, although it remained slightly on the back foot before the land markets opened on Friday. Sentiment has been helped somewhat by Chinese efforts to calm the market by telling foreign brokers to prevent the recent repression of sectors, including private education, from “overinterpreting”.