Dollar falls while Yen up as dealers evaluate US interest policy

The dollar stabilized near its lowest level in seven weeks today, Friday, as concern about banks kept investors cautious and dealers assessed the possibility that the Federal Reserve (the US central bank) would stop raising interest rates.

According to Reuters, the dollar index, which measures the performance of the US currency against six major currencies, fell 0.097 percent to 102.48 points, remaining slightly above its seven-week low of 101.91, which it touched on Thursday. The index achieved slight gains on Thursday, its first in six trading days

The Fed on Wednesday raised interest rates by 25 basis points as expected, but took a cautious stance on further hikes due to banking turmoil even as Chairman Jerome Powell kept the door open for another rate hike if needed. ..

On Thursday, US Treasury Secretary Janet Yellen confirmed that she is ready to take further measures to ensure that Americans’ bank deposits remain safe, to calm investors.

The yen rose 0.5 percent to 130.16 against the dollar, after touching a six-week high of 130.055 earlier in the session.

And the pound sterling settled at 1.2285 dollars, after touching the highest level in seven weeks at 1.2341 dollars on Thursday, in volatile transactions.

The euro rose 0.03 percent at $1.0833, to remain below its seven-week high of $1.0930, which it touched on Thursday.

Investors will focus on March PMI data from the Eurozone, Germany, France and Britain due later on Friday to assess the state of the European economy.

The Australian dollar rose 0.07 percent to 0.669 against the dollar, while the New Zealand dollar fell 0.14 percent to 0.624 against the dollar.