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The dollar is set for the fourth weekly decline of the dovish Fed; 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 2.8%. A loss of four weeks

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

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

4% drop in July.

The Canadian dollar rose by

More than three years high of Cdn $ 1.2273 per dollar on Friday,

on track for a 1.7% 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

policy change.

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

its asset purchase program had pushed the dollar index, or

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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 prices rise to a six-week peak.

Higher commodity prices also supported the Australian dollar

, which gained 0.2% to $ 0.77795, rising again towards

the six-week high of $ 0.78180 touched Thursday.

The euro has remained practically flat at $ 1.2122, 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 saw opposite fortunes, hurt by a recovery

in US Treasury yields and a rally to all-time highs for

actions that undermined the demand for safe assets.

Japan’s currency changed hands at 108.86 per dollar, close to

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

loss of about 1% during the week.

In cryptocurrencies, the ether floated just below a

record of $ 2,800.89 set Thursday after being raised

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this week in media reports on the European Investment Bank

plans to launch a “digital bond” sale on the ethereum blockchain

network.

Bitcoin, a larger rival, was trading at $ 53,511.89,

wavering around that level this week after falling as low as

$ 47,004.20 Sunday after a sharp setback from the record

$ 64,895.22 maximum marked mid-month.

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

Currency offer prices at 119 GMT

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

Previous change

session

Euro / Dollar $ 1.2123 $ 1.2122 + 0.01% -0.78% +1.2127 +1.2117

Dollar / Yen 108.8470 108.9100 -0.05% + 5.39% +109.0450 +108.8600

Euro / yen

Dollar / Swiss 0.9084 0.9089 -0.05% + 2.68% +0.9092 +0.9085

Pound sterling / Dollar 1.3954 1.3946 + 0.09% + 2.17% +1.3957 +1.3941

Dollar / Canadian 1.2273 1.2278 -0.01% -3.59% +1.2283 +1.2272

Aussie / Dollar 0.7776 0.7766 + 0.14% + 1.09% +0.7783 +0.7767

New Zealand 0.7247 0.7243 + 0.06% + 0.92% +0.7250 +0.7241

Dollar / dollar

All the places

Tokyo locations

Spots of europe

Volatilities

BOJ Tokyo Forex Market Information

(Reporting by Kevin Buckland; edited by Lincoln Feast.)

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