Arab Press

بالشعب و للشعب
Friday, Jan 27, 2023

U.S. dollar down, still set for best year since 2015

U.S. dollar down, still set for best year since 2015

The dollar was on track to post its best year since 2015 on Friday in the last trading day of a year dominated by Federal Reserve rate hikes and fears of a sharp slowdown in global growth.
As 2022 draws to a close, the dollar was set to notch a 7.9% annual gain against a basket of currencies - its biggest annual jump in seven years. But the dollar has pared gains in recent weeks as investors look for signs of when the Fed's interest-rate-hiking cycle might end.

The Fed has raised rates by a total of 425 basis points since March in an attempt to curb surging inflation.

With liquidity lower due to holidays, the dollar index was down around 0.433% on the day at 103.530 .

"I think everyone is struggling with the question of whether the big problem in 2023 will be weak growth or stubborn inflation," said Adam Button, chief currency analyst at ForexLive. "If it's weak growth, the U.S. dollar will fall. If it's high inflation, then the U.S. dollar will rally."

The euro was up 0.34% on the day to $1.0697 , on pace for a 5.9% annual loss versus the dollar, compared with last year's 7% drop. A combination of weak euro-zone growth, the war in Ukraine and the Fed's hawkishness has put the euro under pressure this year.

"Higher rates paired with stronger economic growth are helping to pull flows into the euro area, but any of that is at risk, particularly if energy prices do rise again, or the [European Central Bank] starts to turn less hawkish," said Karl Schamotta, chief market strategist at Corpay.

The British pound was last up 0.09% at $1.2063, on pace for a 10.8% annual drop .

The Australian dollar, seen as a liquid proxy for risk appetite, was up 0.41% on the day at $0.681 , but set to drop 6.4% on the year overall.

China's offshore yuan was down 0.73% against the U.S. dollar at $6.9215 . It was on pace to drop 8.7% this year, hurt by dollar strength and a domestic economic slowdown.

Optimism about China's reopening after three years of strict COVID-19 curbs has been tempered by surging infections that threaten more economic disruptions.

Jan Von Gerich, chief analyst at Nordea, said China's reopening "will be a source of volatility."

“But when we get past that, when we really get to the really positive economic impact, I think it should boost risk appetite globally," he said.

The U.S. dollar was down around 1.63% against the Japanese yen, at 130.860. .

The Bank of Japan's ultra-dovish stance has the dollar set to gain 13.7% versus the yen this year, in the yen's worst performance since 2013.

The Swiss franc was steady versus the dollar, at 0.923 .

The Swiss National Bank increased the amount of the Swiss currency it sold in the third quarter of 2022, the central bank said on Friday, indicating that its focus has switched from stemming the franc's strength to fighting inflation.

In cryptocurrencies, bitcoin last fell 0.26% to $16,550, down more than 64% so far in 2022.
Newsletter

Related Articles

Arab Press
Close
0:00
0:00
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Saudi FM discusses Kingdom’s economy, oil, Iran and US ties in Davos
Israelis rally in three cities against Netanyahu legal reforms
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Saudi Arabia plans to use domestic uranium for nuclear fuel
Mohammed Bin Salman chosen most influential Arab leader of 2022
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
United Arab Emirates says it will teach Holocaust in schools
Saudi Arabia set to overtake India as fastest-growing major economy this year 
International medical experts speak out against COVID-19 restrictions on China
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Almubarak named ‘The Best Central Bank Governor of the Year 2023 for the Middle East’
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Dubai announces $8.7 trillion economic plan to boost trade, investment and global hub status
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Prince William's godmother resigns honorary royal role after exposing her/their racism
Tax fraud verdict again exposes illusion of Trump the master businessman
×