US Dollar Rally Paused on Fed’s Calm Stance on Inflation

#dollar #Fed #inflation


USD took a breather Friday in Asia, but looks set to post weekly gains Vs a basket of currencies as investors weighed the risk of US inflation rising faster than expected.

The Fed has stuck to its script that its stimulus will be in place for some time to support the economy, as policy makers view the spike in inflation as transitory.

In mid-Friday Asian trade, .DXY stood at 90.707, sitting on a gainer of 0.5% so far this wk, off its 2.5-month low at 89.979 set Tuesday.

Against JPY, USD stood at 109.50 yen, below Thursday’s one-month high of 109.785.

EUR was fetching 1.2076, holding above Thursday’s low of 1.20515, while the GBP changed hands at 1.4047.

In crypto currencies

Bitcoin flirted with 2.5-month lows after Elon Musk reversed his stance on accepting the digital currency and on news of a US probe into Binance, one of the world’s biggest cryptocurrency exchanges.

The world’s biggest cryptocurrency last traded at 49,155

Ether, the second-biggest cryptocurrency is firmer at 3,783.5, though still off a record high of 4,380.64 marked Wednesday.

Dogecoin, a coin promoted by Mr. Musk, jumped as much as 20% after he said he was involved in work to improve the token’s transaction efficiency.

Have a healthy weekend, Keep the Faith!