Dollar heads for first weekly loss since January

The dollar retreated from its highest level in two and a half months against the yen today, Friday, and headed towards recording the first weekly loss since January against other major currencies, as dealers try to determine the course of the Federal Reserve’s monetary policy (the US central bank).

According to Reuters, the yen, which is particularly sensitive to long-term interest rate differentials between the United States and Japan, threatened to extend its weekly losing streak to seven weeks, even as it gained momentum on Friday as 10-year US Treasury yields fell from their peak level in about four months

The statements of Rafael Bostic, Chairman of the Federal Reserve Board in Atlanta, had led to the dissipation of some of the dollar’s strength and the rise of Treasury bond yields, as he said Thursday evening that “slow and steady will constitute the appropriate course of action,” despite the new employment data that was added to the series from recent strong data.

The dollar index, which measures the performance of the US currency against the yen, the euro and four other major currencies, fell 0.11 percent to 104.85, from the high level of 105.36 recorded a few days ago, the highest level since January 6.

It has decreased since last Friday by 0.36 percent

Analysts polled by Reuters said that the dollar’s recent strength is temporary, and that the currency will weaken throughout the year with the improvement of the global economy and expectations that the Federal Reserve will stop raising interest rates well before the European Central.

The Bank of Japan is also expected to start removing the extraordinary stimulus measures after Governor Haruhiko Kuroda retires next month.

Tokyo inflation data for February exceeded the Bank of Japan’s target for the ninth month, but the underlying gauge slowed from a 42-year high.

The dollar fell 0.15 percent to 136.575 yen, after rising to 137.10 overnight, the highest level since December 20.

The euro rose 0.08 percent to $1.0606. Since last Friday, it has advanced 0.59 percent.