The American currency has been increasingly pressured on multiple fronts, both from the inside and out.
The dollar index, DXY, is looking to finish another week in negative territory. An early-week attempt to charge higher proved futile after the Federal Reserve on Wednesday raised interest rates but pledged to halt its tightening policy for the rest of 2023. No rate hikes means no more prospects for higher returns on the dollar.
Against that backdrop, the dollar index is on track to log its eighth losing week over the past ten weeks. The drop has led to a total depreciation of just under 5% against a basket of other major currencies. In the longer-term, from last September to today, the DXY is down from a 20-year high of 114.80 to 101.10.
Currency pairs tied to the dollar gained some more traction early on Friday. The EUR/USD regained its $1.1050 threshold, after a 25 bps from the European Central Bank knocked the euro for a while yesterday. The GBP/USD is looking to eclipse a 1-year high at $1.2670.
