The U.S. dollar slid from its highest level in 20 years against a basket of currencies on Friday, but posted the best month in seven years as worries about the global economy and a hawkish U.S. Federal Reserve buoyed demand for the currency. greenback.
The US dollar hit a 20-year high against the yen on Thursday, as the Japanese currency was hit by the Bank of Japan’s accommodative policy. It also hit a five-year high against the euro, which has fallen sharply since Russia invaded Ukraine as investors worried about energy security, inflation and economic growth. Europe.
The greenback returned some of those gains on Friday as investors took profits, but still ended the month strong.
“We’ve seen some large-scale dollar strength,” said Vasily Serebriakov, a currency strategist at UBS in New York. “There is a general story, which has more to do with concerns about the global cycle and helping the dollar through risk aversion, but there are also idiosyncratic stories like the dollar/yen.”
Concerns about global growth have risen as China implements containment measures in a bid to stop the spread of COVID-19. China’s capital Beijing closed more businesses and residential compounds on Friday as authorities ramped up contact tracing to contain a COVID-19 outbreak, while resentment over Shanghai’s month-long lockdown grew.
In Taipei, the New Taiwan Dollar rose against the greenback, gaining NT$0.045 to close at NT$29.480, down 0.8% for the week.
The U.S. dollar index against a basket of currencies fell 0.4% to 103.21 on Friday, after hitting 103.93 on Thursday, which was the highest since December 2002.
It was up 4.76% over the month, the biggest increase since January 2015.
The yen was worth ￥129.32, after hitting ￥131.24 on Thursday, the weakest since April 2002.
The US dollar gained 6.41% against the Japanese currency last month, the best month since November 2016.
The Bank of Japan on Thursday reinforced its pledge to keep interest rates ultra-low by pledging to buy unlimited amounts of bonds daily to defend its yield target, triggering a further sell-off in the yen.
The euro was worth US$1.0569, after falling to US$1.0470 on Thursday, the lowest since January 2017. The single currency fell 4.51% this month, the highest since January 2015.
The greenback briefly pared losses after data on Friday showed US consumer spending rose more than expected in March amid strong demand for services, while monthly inflation rose the most since 2005 .
Additional CNA reports, with an editor
Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. The final decision will be at the discretion of the Taipei Times.