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Currencies: the dollar up, the rand and the rupee down

06/01/2023
Source : ORISHAS FINANCE
Categories: Economy/Forex

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At the end of this week, the currencies moved in a dispersed rank. While the dollar has continued to rise près d' un sommet de près d' un mois vendredi , the South African rand and the rupee are weakening.

After U.S. economic data highlighted a still tight labor market that could keep the Federal Reserve on its aggressive rate hike path, the dollar held close to a pr& peak Severe; s of one month on Friday. While layoffs fell by 43 percent in December, according to data released Thursday, the number of Americans filing new unemployment benefits claims fell to its lowest level in three months last week.

The surge in the greenback caused the pound to fall to its lowest level in six weeks, to $1.1873, overnight. Recently, it was up 0.12% to $1.1922. During the previous session, the euro similarly fell by 0.8% to reach its lowest level in more than three weeks at $1.0515 and was stable at $1.0519. The dollar rose 0.6 percent to a one-week high of 134,045 yen overnight, and last bought 133.44 yen, as far as the Japanese yen is concerned.

For its part, the Aussie was up 0.07% to $0.6757, after sliding 1.3% during the previous session. The kiwi rose 0.02% to $0.6224, after falling 1% on Thursday, and was on track to suffer a weekly loss of nearly 2%, its worst since September.

On the side of the South African rand weakened in the first few trades against the dollar on Friday. The rand traded at 172,000 against the dollar at 0634 GMT, 0.12% lower than its previous close. The Dollar Index, which measures the currency against six rivals, was up 0.07% to 105.2. After Thursday's U.S. economic data highlighted a tight labor market that could keep the Fed on track with its aggressive tightening policy, the greenback hovered near a nearly one-month high in early trading.

After two reports indicated a robust U.S. labor market, raising concerns about the Federal Reserve's rate outlook, the Indian rupee is expected to open lower against the dollar Friday. It should open at around 82.64-82.66 per dollar, down from 82.5550 in the previous session. In three weeks, the local currency had its best session on Thursday.

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