U.S. dollar is expected to rise weekly due to virus concerns Reuters

© Reuters. File photo: The illustration shows a US $100 bill taken in Tokyo on August 2, 2011. REUTERS/Yuriko Nakao

Author: Ian Withers

LONDON (Reuters)-As the rise in the number of COVID-19 infections shrouded the pandemic recovery, investors turned to safety and the U.S. dollar rose weekly on Friday.

The U.S. dollar, which tracks the U.S. dollar against other major currencies, is expected to rise 0.6% this week, which will be the biggest weekly gain in about a month. It7 rose slightly by 0.1% to 92.700 that day.

The solid US data and the change in interest rate expectations after the Fed hinted in June that it raised interest rates earlier than expected in 2023 have laid a bottom for the US dollar in the past month and made investors nervous about shorting the US dollar.

Although Federal Reserve Chairman Jerome Powell reiterated on Thursday that the rise in inflation may be temporary and the U.S. central bank will continue to support the economy, there has been an increase.

Imre Speizer, a Westpac strategist, said: “Obviously, there is some power behind the dollar.” “And I think it hinders all professions.”

“There are interest rate factors,” he said. “Sometimes it’s safe-haven buying… We do think the dollar will be very strong in the coming months.”

Traders will pay close attention to the US retail sales data for June, which will be released later this trading day, and look for any data on inflation and the strength of the recovery.

“This will be a key determinant of future economic growth. As the fiscal stimulus brought about by special government spending fades, the burden of supporting the economy falls on consumers, who are likely to remain unemployed,” said Marshall, head of investment research. Gittler (Marshall Gittler) said. In BDSwiss.

After data showed that consumer prices rose much faster than expected, the New Zealand dollar became one of the currencies with the largest gains during Asian trading hours, prompting some people in the market to bet on raising interest rates as soon as August.

It gained 1% against the U.S. dollar and finally rose 0.4% to $0.70080.

In other respects, the U.S. dollar rose by about one-third against the yen, and was last reported at 110.08 yen. The euro fell 0.1% against the US dollar to 1.18015 US dollars.

The cryptocurrency gained support, but was close to the bottom of the recent range, with Bitcoin at $31,332.

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