FX Guys

Dollar climbs as central banks see inflation risks unwind

Elsewhere, the greenback broadly advanced on the back of its Atlantic counterparts’ decline, reversing its losses earlier in the week.

The pound slid 0.15% to a more than two-week low of $1.2206 in early Asia trade, after falling 1.2% in the previous session, its largest daily decline in a month.

The euro was last 0.16% lower at $1.0893, after tumbling 0.7% on Thursday to move further away from its 10-month peak of $1.1034.

On Thursday, the ECB and BoE each raised interest rates by 50 basis points as expected, with the latter signalling the tide was turning in its battle against high inflation.

While the ECB explicitly alluded to at least one more hike of the same magnitude next month and reaffirmed its commitment in battling high inflation, President Christine Lagarde acknowledged the euro zone outlook had become less worrisome for growth and inflation.

“The ECB was a little bit more dovish than markets had previously expected … (while)…
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