The dollar held steady against most major peers, ending a recent slide, and also gained sharply against the yen, which has been volatile as Japan’s fiscal year-end approaches.
The dollar index was steady at 102.43, giving back a small gain to 0.32% in Europe. It has declined over the past two sessions, falling 2.12% month-on-month, part of a market disruption caused by challenges in the banking industry.
The euro advanced to $1.0856 today, while the sterling was steady at $1.2344, hitting a two-month intraday peak of $1.237.
Surface markets think the Fed will have to pull back interest rates due to banking instability, and the dollar may be negative. Still, if rates pull back due to fears of a recession, allocating investments properly is important.
The yen remained steady on Friday at the end of Japan’s fiscal year. The dollar hit a one-week high against the yen and was last up 0.72% at 131.86 yen, while the euro was up 0.72% at 143 against the yen.
The yen hit its highest level in nearly two months against the dollar and euro last week, but the market will see less need for a safe haven this week.
The dollar retreated 0.52% against the yen earlier in the day as it moved positively against long-term US Treasury yields, which are rising as markets return to a stable environment.
The US 10-year benchmark yield retreated to a one-week peak of 3.584% in Tokyo trade but was last reversed at 3.557%. Last Friday, the gain retreated to a six-month low of 3.284%.
The Australian dollar dropped by 0.46%, settling at $0.6677, after Australian consumer inflation declined to its lowest level in eight months, further encouraging the Reserve Bank to refrain from increasing interest rates next week.
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