Dollar higher after suffering worst week in a year

The dollar was broadly up against most major currencies on
Tuesday (May 28th), after the greenback ended last week with
its worst run in a year.

Volatile Japanese stocks and bonds saw USD/JPY dip to
100.68 on Friday and close down nearly two per cent for the
week.

But the dollar pared back some of the losses and rose one per
cent to 101.95 in Tuesday’s Asian session amid light trading
following holidays in the US and the UK.

Sterling’s
exchange rate with the dollar pushed higher in quiet trade on
Monday, pulling well clear of Friday’s trough of 1.5062 to
1.5156 at one stage, before sliding back towards the 1.5100
level.

Meanwhile the euro was down against the dollar, with
EUR/USD trading around 1.2909 after European Central Bank
executive board member Joerg Asmussen said the
bank’s expansive monetary policy will stay in place as long as
necessary.

But he did caution against the idea of negative interest
rates, saying keeping “rates low for too long would
create new risks”.