The dollar index fell at the end of trading on Friday, but it is heading towards its biggest weekly gain in 9 years, as it is supported by a set of strong data on the US economy, which suggests that the US Federal Reserve may be heading to end raising interest rates.
As for the Chinese yuan, it reversed the direction of the dollar index, falling during the day’s local trading to record its lowest level since 2007 at a time when it is under pressure from capital outflows, as well as the widening yield gap with major economies.
The dollar index, which in turn measures the performance of other currencies against the US currency, within the basket of currencies fell slightly by about 0.1% to record about 104.93 points, but nevertheless it is still approaching its highest level in 6 months, which it recorded during the last session at 105.5 points, and it also moved to extend its gains for the eighth week in a row by an increase of 0.6%.
As for the European euro, it has suffered losses for 8 consecutive weeks, but it wanted to rise in its latest transactions by 0.1% to record the level of 1,0709 dollars, after it recorded its lowest level in 3 months at 1,0686 dollars yesterday, while the pound sterling rose from its lowest level recorded 3 months ago to reach 1,2496 dollars, despite this it suffered weekly losses of more than 0.7%.
