Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar edges up, on track for third straight day of gains

Economy Mar 25, 2022 03:22PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. REUTERS/Jason Lee

By Chuck Mikolajczak

NEW YORK (Reuters) - The dollar edged higher against a basket of major currencies on Friday, putting it on track for a third straight day of gains, as crude prices reversed earlier weakness and added to pressure for the Federal Reserve to be aggressive in combating inflation.

After initially declining, oil prices rebounded following a missile attack hit Saudi Arabia's state-run oil company Aramco (SE:2222)'s storage facility.

The war in Ukraine and resulting rise in commodity prices has added upward pressure to already high inflation.

The dollar index rose 0.071%, with the euro down 0.11% to $1.0984.

The greenback is poised for a solid gain this week, which would mark its sixth weekly gain in the past seven. The dollar has benefited from its status as a safe haven and the conflict in Ukraine has driven expectations the Fed will hike interest rates.

"The one thing everyone can agree upon is inflation is going to be longer-lasting and a lot of that will be sticky and that will complicate what central banks do in the end," said Edward Moya, senior market analyst, at Oanda in New York.

"You will probably see the dollar lead the charge with rate hikes, Europe will lag and that interest rate differential should provide some support for the dollar."

Joining other analysts that have raised expectations for a more aggressive Fed, Bank of America (NYSE:BAC) on Friday said it expects two hikes of 50 bps each at its June and July meetings with "risks" of those being pulled forward into May and June respectively.

Citi also revised its Fed policy path higher for rate hikes, expecting 50 basis point hikes at the May, June, July and September meetings this year.

Economic data pointed to rising prices and interest rates starting to crimp some economic activity.

Contracts to buy U.S. previously owned homes dropped to the lowest level in nearly two years in February while consumer sentiment was dented in part by climbing gasoline prices, which boosted inflation expectations to the highest level since 1981.

The euro gave up early gains and weakened, and was on pace for its sixth weekly decline in seven, although concerns about an economic slowdown were likely to keep it in a tight range.

German business morale deteriorated in March due to worsening supply chain issues resulting from high petrol prices and driver shortages, a survey showed on Friday.

The Japanese yen strengthened 0.21% versus the greenback to 122.07 per dollar after hitting a fresh low of 122.43, the weakest in more than six years, while Britain's pound was last trading at $1.3187, up 0.03% on the day.

The yen has been under pressure, with the Bank of Japan expected to keep its soft monetary policy in place, in contrast to most other central banks around the globe.

In cryptocurrencies, Bitcoin last rose 1.24% to $44,448.50.

Dollar edges up, on track for third straight day of gains
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email