Dollar steady on higher-for-longer rate outlook; yen wobbles
The dollar was set for its fourth straight week of gains as investors braced for U.S. interest rates to be higher for longer, while the yen was volatile, with incoming Bank of Japan Governor Kazuo Ueda saying it was appropriate to keep ultra-loose monetary policy.
Data overnight showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, underscoring a still-tight labour market and a resilient U.S. economy.
Strong U.S. economic data and hawkish rhetoric from Fed officials this month have resulted in the dollar erasing its year to date losses as investors digest the prospect of the Fed staying on its monetary tightening path for longer.
The dollar index , which measures the U.S. currency against six other rivals, was at 104.54 on Friday, hovering around the near seven-week high of 104.78 it touched on Thursday.
Rodrigo Catril, senior currency strategist at National Australia Bank, said the jobless claims data continues to suggest the U.S. labour market remains in rude health.
This report’s information was first seen on REUTERS; to read more, click this link.
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