05.12.2024 US
1016 day since the barbaric invasion of Ukraine

The dollar strengthens against the euro and pound, stable against the yen

The US dollar has strengthened against the euro and the pound amid expectations for the Federal Reserve, stable against the yen; the DXY index is rising

Interfax-Ukraine
Exchange rates chart
Exchange rates chart, illustrative photo / Adam Śmigielski, Unsplash

On Friday, in currency trading, the US dollar strengthened against the euro and the British pound but remained unchanged against the Japanese yen.

The euro to dollar exchange rate fell to $1.0708 from $1.0728, recorded at the close on Thursday.

The British pound also depreciated, dropping to $1.2539 from $1.2552.

Meanwhile, the dollar's exchange rate against the yen barely changed, standing at 153.23 yen compared to 153.28 yen the day before.

The DXY index, which tracks the dollar's performance against a basket of six currencies including the euro, Swiss franc, Canadian dollar, British pound, Swedish krona, and yen, increased by 0.14%.

The broader WSJ Dollar Index also showed an increase of 0.12%.

Expectations regarding a gradual easing of monetary policy by the US Federal Reserve (Fed) support the dollar. These assumptions are based on the stability of inflation in the US.

At the same time, the European Central Bank (ECB) has signaled possible rate cuts, leaving key interest rates unchanged at its last meeting.

In Germany, the pace of inflation harmonized with European Union standards has slowed to the lowest in the last four months, registering 2.3% annually compared to 2.7% the month before, according to data from the Federal Statistical Office (Destatis).