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“Decidedly” Dovish Fed Sends Dollar to Fourth Weekly Loss; loonie in max 3 years

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TOKYO – The US dollar skidded toward a

fourth consecutive weekly decline against a basket of major pairs

on Friday, as the Federal Reserve stuck to its message of

ultra-low interest rates for longer.

The dollar index was on track to end the week 0.2%

lower, bringing its losses in April to 2.7%. A loss of four weeks

The streak would be the longest since the six-week slide to the end.

last July, and the monthly loss would also be the largest

since the 4% drop in July.

The Canadian dollar rose by

more than three years high of Cdn $ 1.2268 per dollar on Friday,

on track for a 1.6% weekly gain which would be the highest since

beginnings of November.

At the conclusion of the last Fed policy meeting on

On Wednesday, President Jerome Powell acknowledged the

growth, but said there was still not enough evidence of

“Further substantial progress” towards recovery to ensure a

switch to your ultra-loose currency settings.

That growth accelerated in the first quarter, driven by

government stimulus controls, setting the course for what

It is expected to be the strongest performance this year in almost

four decades.

Signs that a strengthened economy, particularly in the

labor market, could force the Fed to reduce earlier


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its asset purchase program had boosted the dollar index, or

DXY, to a maximum of five months at the end of March.

“DXY may try to recover in the next few days, as expectations

turn to potentially blockbuster April payrolls next week, but

gains will be short-lived with Fed officials to underscore

Powell’s decidedly peaceful stance, ”Westpac strategists wrote in

a customer note.

The indicator is likely to fall below 90 in the short term, from

90.6 currently, but DXY’s depreciation trend is likely to be more

from an ongoing routine than from a strong wholesale setback, ”they said.

The Fed’s restraint was in marked contrast to that of the Bank of

Canada, which has already started to reduce its asset purchases.

The Canadian dollar linked to commodities received additional support from a

oil surge to a six-week peak coupled with higher lumber prices.

Rising commodity prices also supported the Australian dollar

, which gained 0.2% to $ 0.77785, rising again towards

the six-week high of $ 0.78180 touched Thursday.

The euro has remained practically flat at $ 1.21165, close to the

The two-month high of $ 1.2150 marked the previous session. The shared

the coin is up 0.2% for the week and 3.3% for the month.

The yen, a traditional haven, saw the opposite

fortunes hurt by a recovery in US Treasury yields and a rebound

to all-time highs for global stocks that undermined demand for

safer assets.

Japan’s currency changed hands at 108.81 per dollar, close to

the two-week low of 109.22 as of Thursday, setting it for a


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loss of about 0.9% during the week.

The Chinese yuan is trading near its strongest level since March

3 in the offshore market, last change of hands at 6.4635 per

dollar, even as indicators of Chinese manufacturing activity showed a loss

boost in April.

The yuan is up 1.5% this month from a four-month period.

low of 6.5875 on April 1, but Mizuho strategist Ken Cheung wrote

in a note from a customer that a price change of growth paths for

China against the United States will keep the rally under control


In cryptocurrencies, the ether remained below a record

$ 2,800.89 high set Thursday, after being raised this week

on media reports on the European Investment Bank’s plans to

launch a “digital bond” sale on the ethereum blockchain network.

“The use case for ethereum has grown exponentially”,

particularly with a broader use of non-fungible tokens (NFTs), he said

Tim Frost, CEO of the fintech company YIELD App.

“All signs point to a continued bull market.”

Bitcoin, a larger rival, was trading at $ 54,256.24,

wavering around that level this week after falling as low as

$ 47,004.20 on Sunday, following a sharp setback from the record

$ 64,895.22 maximum marked mid-month.

============================================== = = =====

Currency offer prices at 0526 GMT

Description RIC Last US Closing Percentage Change YTD Pct High Bid Low Bid

Previous change


Euro / Dollar $ 1.2117 $ 1.2122 -0.04% -0.83% +1.2127 +1.2116

Dollar / Yen 108.8170 108.9100 -0.01% + 5.43% +109.0450 +108.7250

Euro / yen

Dollar / Swiss 0.9089 0.9089 + 0.02% + 2.75% +0.9092 +0.9084

Pound sterling / Dollar 1.3938 1.3946 -0.05% + 2.02% +1.3957 +1.3939

Dollar / Canadian 1.2274 1.2278 -0.02% -3.60% +1.2283 +1.2268

Aussie / Dollar 0.7775 0.7766 + 0.14% + 1.09% +0.7783 +0.7767

New Zealand 0.7244 0.7243 + 0.03% + 0.89% +0.7253 +0.7241

Dollar / dollar

All the places

Tokyo locations

Spots of europe


BOJ Tokyo Forex Market Information

(Reporting by Kevin Buckland; Edited by Lincoln Feast)


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