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The Dollar headed for its best weekly boost in about a month

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The Dollar headed for its best weekly boost in about a month

The Dollar headed for its best weekly boost in about a month

On Friday, the U.S. dollar headed for its best weekly rise in about a month. The growth was supported by buying on investor worries about swifter U.S. interest rate rises and by increasing virus infections. Meanwhile, a hot inflation reading boosted the risk-sensitive New Zealand dollar.

Kiwi was the biggest mover amongst majors in morning trade. It increased by 0.4% and traded at $0.7003. The rise came after consumer prices increased faster than anticipated 1.3% for the June quarter and 3.3% for the year.

Additionally, the reading has brought forward rate hike anticipations to next month. The market now expects that the Reserve Bank of New Zealand becomes the first developed-market central bank to ease emergency policy.

The New Zealand dollar is up 0.1% against the U.S. dollar.

Meanwhile, the American currency was steady on Friday. The dollar rose by 0.5% against the euro. It also surged 0.5% against the British pound. Against the Australian dollar, the greenback gained 0.9%.

The dollar index, which tracks the dollar versus a basket of six major currencies, gained 0.5% for the week and traded at 92.604.

Traders are waiting for U.S. retail sales data along with consumer confidence for any reading on inflation. Meanwhile, the Bank of Japan concludes a two-day meeting. However, it is unlikely to change any policy settings.

The government will lift most restrictions in the United Kingdom on July 19

Investors are concerned about what happens in highly-vaccinated England over the coming weeks after the ease of most restrictions on July 19.

Meanwhile, treasuries have increased for a third week in a row as concerns about the spread of the Delta variant and a wager on inflation being transitory has pulled long-end yields lower.

The Japanese yen increased by 0.2% on the dollar for the week so far. The currency headed for its best week in a month versus the euro.

The yen last traded at 109.98 per greenback and 129.86 per euro. The euro held at $1.1808, close to the three-month low of $1.1772 it hit during the week.

The British pound traded at $1.3832 early in the Asia session, handing back some of a bounce.

Aussie has also been a victim of the lockdown of Melbourne and Sydney. It has declined 0.9% on the dollar this week to $0.7423, at a more than five-month low on the New Zealand dollar.

Meanwhile, in cryptocurrencies, the dominant cryptocurrency, Bitcoin,  fell to $31,486.70. The second-largest cryptocurrency traded at $1,872.36.

The post The Dollar headed for its best weekly boost in about a month appeared first on FinanceBrokerage.

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