• Reuters, NEW YORK and LONDON

The US dollar edged down against a basket of major currencies on Friday, breaking its five-week winning streak as global risk appetite rebounded, reducing demand for the safe haven currency.

Global equity markets rallied this week as fears of a stagflationary economy were dampened by above-expected corporate profits in the United States.

Surprisingly strong US retail sales data for the past month also boosted sentiment. Retail sales rose 0.7% last month, against expectations of a 0.2% drop, helped in part by higher prices.

“The appetite for risk here remains really, really strong at the moment,” said Boris Schlossberg, managing director of currency strategy at BK Asset Management.

“It helps high beta currencies like the pound, euro and aussie, just because the market is feeling a lot more positive,” he said.

The US dollar index strengthened after the retail sales data, but then trended lower and fell 0.2% for the week, after appreciating in the five weeks previous ones.

The US dollar lost 0.1% to 93.95, after hitting a one-year high at 94.563 on Tuesday.

In Taipei, the New Taiwan Dollar appreciated against the greenback, gaining NT $ 0.016 to close at NT $ 28.027, little change from NT $ 28.046 last week.

The British pound rose 0.69% to US $ 1.3765, its highest since September 17, while the euro edged up 0.02% to US $ 1.1601 after touching 1.1624 US $ Thursday for the first time since September 4.

The risk-sensitive Australian dollar rose 0.01% to US $ 0.7416, after climbing to US $ 0.7439 earlier in the session. The New Zealand dollar jumped 0.42% to US $ 0.7065, extending Thursday’s 1% rise.

The Japanese yen was the biggest loser, falling to 114.46 yen to the US dollar, its lowest since October 2018.

The yen is a safe haven currency and has been hit by the rebound in sentiment, including in Asia.

The US dollar was up 0.42% against the yen at 114.15 yen.

The greenback has rallied against its major peers since the start of last month amid expectations that the U.S. central bank would tighten monetary policy faster than expected amid an improving economy and surging prices. energy prices.

The minutes of the U.S. Federal Reserve meeting last month confirmed this week that a cutback in stimulus is almost certain to begin this year, although policymakers are sharply divided over inflation and what they should do about it.

CNA Supplementary Reports, with Editor-in-Chief

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