Steady dollar amid inflation data, bitcoin's pause, and yen's retreat to key level
Shafaq News/ On Friday, the U.S. dollar remained stable following data indicating that U.S. inflation is persistently high but gradually easing. This has kept expectations alive that the Federal Reserve might initiate interest rate cuts in June. In contrast, the yen experienced a setback, slipping back to the pivotal 150 per dollar level.
Bitcoin's impressive surge took a pause, with its current value at $61,400, near a more than two-year high and close to the all-time high. The cryptocurrency saw a remarkable 45% increase in February, marking its most substantial monthly gain in over three years. This surge was propelled by a flow of funds into exchange-traded funds, which received approval and were launched this year in the United States.
The dollar index, gauging the U.S. currency against six major counterparts, settled at 104.12 after a volatile overnight session following the inflation report. The data revealed that U.S. prices rose in January as anticipated, while annual inflation dipped to the lowest point in three years.
Meanwhile, the euro posted a 0.1% increase, reaching $1.08155 ahead of the euro zone's inflation report, expected to show a decline in prices. This development strengthens the case for the European Central Bank to potentially initiate rate easing later this year.
The Australian dollar witnessed a 0.17% rise to $0.65085, and the New Zealand dollar increased by 0.09% to $0.60925.
On Friday, the yen experienced a 0.28% weakening, reaching 150.38 per dollar. This followed a strengthening to as much as 149.21 on Thursday after comments from Bank of Japan official Hajime Takata suggested a potential need to exit ultra-easy monetary policies.
