Traders analyze interest rate trajectory as dollar faces potential weekly decline for the first time since January

The dollar has retreated from its all-time high in two-and-a-half months against the yen today, Friday, and is heading for the first weekly loss since January against other major currencies as traders try to determine the course of Federal Reserve monetary policy .

The yen, which is particularly sensitive to long-term interest rate differentials between the US and Japan, threatened to extend its weekly losing streak to seven weeks, though it gained momentum on Friday as US Treasury yields dropped to 10 years have come down from their maximum level in almost four months.

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And statements by Federal Reserve chairman Rafael Bostick in Atlanta led to some of the dollar’s strength dissipating and Treasury yields rising, as he said last night that “slow and steady will be the appropriate course of action.” , despite new jobs data adding to a string of strong data from the past few days.

The dollar index, which measures the US currency’s performance against the yen, euro and four other major currencies, fell 0.11% to 104.85 from a high of 105.36 recorded a few days ago. which is the highest level since the end of January six.

It decreased by 0.36% from last Friday.

Analysts polled by Reuters said the dollar’s recent strength is temporary and the currency will weaken throughout the year as the global economy improves and the Fed is expected to stop raising interest rates long before the Bank central European.

The Bank of Japan is also expected to start removing extraordinary stimulus measures after Governor Haruhiko Kuroda’s withdrawal next month.

Tokyo inflation data for February topped the Bank of Japan’s target for a ninth month, but the underlying gauge slowed from a 42-year high.

The dollar fell 0.15% to 136.575 yen, after rising to 137.10 overnight, its highest level since December 20.

The euro climbed 0.08%, to $1.0606. Since last Friday, it has advanced by 0.59%.