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Currencies: the market ends the week on a positive note

20/06/2025
Categories: Index/Markets

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The dollar and most currencies should end the week on a positive note, buoyed by its safe haven appeal.

The dollar index comparing the U.S. currency to six other currencies is about to rise by 0.5% this week.

At the start of trading in Asia, the euro grew by 0.16% to $1.151, while the dollar weakened against the yen by 0.17% to 145.23 per dollar.

The yen's rise was also due to higher-than-expected inflation data, which supported expectations of future interest rate hikes. In addition, the minutes of the Bank of Japan's monetary policy meeting this week showed that policymakers agreed on the need to continue to raise rates, which remain at very low levels

.

The Swiss franc held steady at 0.816 to the dollar on Friday, but it is expected to see its biggest weekly drop since mid-April, after the country's central bank cut borrowing costs. Swiss rates are now 0%.

Elsewhere, the offshore yuan was little changed at 7.185 after China kept its benchmark lending rates unchanged as expected.

Australian and New Zealand dollars found some stability on Friday as the Israeli-Iranian conflict continued but did not degenerate into American involvement, offering a welcome respite for at-risk assets.

However, the lack of an immediate American attack was enough to push Aussie up 0.1% to $0.6487, after plunging as much as $0.6446 overnight.

The New Zealand dollar held steady at $0.6000, after sliding as high as $0.5959 on Thursday, as a breakout of support triggered a stop-loss sell. This was a far cry from the eight-month high of $0.6088 reached at the beginning of the week and was at risk of a pullback to

$0.5926.

At 04:00 GMT, the yuan was up 0.08% to 7.1811 per dollar after trading in a range of 7.1756 to 7.1822.

Its offshore counterpart traded at 7.1819 yuan to the dollar, up about 0.06% in Asian trade.

The South African rand was up on Friday, benefiting, like most emerging markets, from the easing of concerns about immediate US intervention in the Iran-Israel conflict. At 14:36 GMT, the rand was trading at 18.00 against the US dollar, up 0.2% from the close on Thursday

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