The US dollar index, gauging the currency against six major counterparts, remains relatively stable at $104.06, after briefly reaching a peak of $104.44, the highest level since June 1.
As the index secures a 0.6% gain for the week, it anticipates its sixth consecutive week of positive growth, buoyed by the resilience displayed in the US economy. This durability further supports the argument for maintaining higher interest rates over an extended period.
Euro, Sterling Slump on Sluggish Data, Growth Fears
Both the euro and sterling currencies encountered setbacks this week due to sluggish business activity data. This prompted investors to revise their projections for additional rate hikes in the Eurozone and the UK. Weakening growth prospects and discussions surrounding a potential pause in interest rate increases at the European Central Bank (ECB) have been prominent factors. Eight sources with direct insight into the discussions highlighted this emerging sentiment.
Check: More Details Euro to PKR
The euro faced downward pressure as concerns about dwindling growth persist. Meanwhile, data revealed a greater-than-anticipated decline in German business sentiment in August, stoking concerns of a possible second recession within a year.
Currency Performance Highlights
On Friday, the euro experienced a marginal 0.01% decrease against the dollar, settling at $1.08085. The yen, on the other hand, continues to grapple with the potential for intervention by the Japanese government, reminiscent of actions taken the previous year. The dollar made modest gains against the yen, rising by 0.31% to 146.28.
Pound Sterling Hits 10-Week Low Amidst Soft Activity Data
Investor expectations surrounding the peak of the Bank of England’s interest rate have been reined in after recent soft activity data. As a result, the British pound slumped to a 10-week low, dropping by 0.03% to $1.2597, a level not seen since June 13.
Cryptocurrency Market Update
In the realm of cryptocurrencies, Bitcoin experienced a 0.49% decline, reaching $26,039, marking a three-day low. This movement continues to capture the attention of investors and analysts alike.
