Euro’s pain makes for U.S. dollar’s weekly gain
The dollar was set to post a second week of chunky gains against the euro on Friday as traders wager on interest rates rising faster and further on the North Atlantic’s western shore, while sterling and the kiwi have also firmed with rate hike bets.
In emerging markets, a gathering currency crisis in Turkey has driven the lira to a record low after the central bank — facing political pressure — cut rates despite inflation running near 20%.
Among majors the euro has been the week’s big mover, and although it has recovered to $1.1372 after slumping to $1.1263, traders said it remains vulnerable as fundamentals and positioning swing to favor the dollar.
The single currency has lost 0.6% this week, helping the dollar index rise 0.5% and touch a 16-month high. It last sat just shy of that at 95.531.
· China's yuan weakens after PBOC sets weaker-than-expected midpoint
The People's Bank of China set the midpoint rate at 6.3825 per dollar prior to market open, weaker than the previous fix of 6.3803.
· Russian rouble recovers some ground amid simmering geopolitical tensions
The Russian rouble continued this week's topsy-turvy trading pattern on Friday, recovering some losses sustained against the dollar in the previous session amid lingering geopolitical tensions, while oil prices ticked higher.
At 0758 GMT, the rouble was 0.4% stronger against the dollar at 72.74 and had gained 0.4% to trade at 82.54 versus the euro .
· Asian FX fall as dollar firms, Indonesia shares hit record high
Reference: CNBC, Reuters
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