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Weekly Roundup: US dollar rises amid risk-off mood

Amy Richards June 26th 2023 - < 1 minute read

A gloomy market mood provided the US dollar with safe-haven flows through the start of last week’s session. Investors grew increasingly worried about the prospect of a global economic downturn. 

Midweek brought mixed movement, as the market mood was a little more uncertain. Investors were also unsure about the Federal Reserve’s next policy decision, which added to USD’s lack of direction. 

Risk appetite faded once again as the week continued. With central banks likely to press ahead with further rate hikes, higher borrowing costs could stifle economic growth around the world. 

This aided USD through to the end of the week. 

So far this week, the ‘greenback’ is trading in a narrow range amid thin trading conditions. 

Upcoming speeches from Federal Reserve Chair Jerome Powell could impact the American currency. Hints at further rate hikes may lift USD exchange rates. 

On Friday, the Fed’s favoured measure of inflation – the core PCE price index – is out. If it shows that price pressures continue to ease, dovish Fed bets could dent the US dollar. 

Written by
Amy Richards

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