As payrolls loom, the dollar is destined for its fifth winning week, thanks to a hawkish Fed.

On Friday, when compared to its main competitors, the US dollar consequently jumped to the fifth winning week. This occurred prior to carefully analysing the US job report

May 06, 2022 - 12:12 PM 242 views

As payrolls loom, the dollar is destined for its fifth winning week, thanks to a hawkish Fed.

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© As payrolls loom, the dollar is destined for its fifth winning week, thanks to a hawkish Fed.

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On Friday, when compared to its main competitors, the US dollar consequently jumped to the fifth winning week. This occurred prior to carefully analysing the US job report, which is likely to support the rapid tightening of monetary policy.

          Continuously for the ninth week, the US dollar was raised against the Japanese Yen. In addition, after the Federal Reserve (Fed) increased interest rates by half a percentage point, the benchmark U.S. Treasury yields began to rise and rose above the 3.1% level overnight.

As per the Reuters poll, economists estimate a total of 3,91,000 US jobs were added in the last month.

On Friday, the US dollar index, which monitors the currency against six rivals, tapered to a 0.02% high level and reached 103.59, keeping it above by 0.35% in the week. For the very first time in the last two decades, it touched 103.59.

The US dollar index gained 0.22% against the 130.46 yen and 0.46% in the week, bringing it closer to the 131.25 point mark. (Last week’s index and 20 year top).

Following the interest rate increase to 75 basis points (bps), Fed Chairman Jerome Powell said a hike of 75 bps is not considered seriously. As a result of this on Wednesday, the US dollar fell slightly.

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