Dollar set for another weekly loss, euro at three-year high
The dollar limped back from a three-year low against a basket of currencies on Friday but still marked its fifth weekly loss out of seven weeks this year, driving the euro up to its highest level since December 2014, APA reports quoting Reuters.
The U.S. currency has been weighed down by several factors this year, including the perceived erosion of its yield advantage as other countries start to scale back easy monetary policy.
Traders’ confidence in the dollar has also been worn down by worries over the United States’ current account and budget deficits, with the latter projected to balloon to near $1 trillion in 2019 amid a government spending splurge and hefty corporate tax cuts.
“Markets are looking at the policies put in place last year, in particular the tax cut, and what the impact of those policies are going to be on the U.S. fiscal deficit,” said Sireen Harajli, a currency strategist at Mizuho in New York.
The euro was last down to $1.241 after hitting its highest since 2014 at $1.256 earlier in the day.
Traditional market correlations have been scrambled this week. Declines in the dollar have come as U.S. Treasury yields hit four-year highs and as stronger-than-expected U.S. inflation bolstered bets that the Federal Reserve could increase interest rates as many as four times this year.
“The market is befuddled by what seems to be changing inter-market relationships ... Last week, the stock market was falling off because of rising yields. This week yields rose and stock markets rallied,” said Marc Chandler, chief global currency strategist at Brown Brothers Harriman & Co in New York.
The S&P 500 looked set to close out the day with gains. It remained set for its sixth straight day of gains after inflation fears sparked a market correction earlier in February.
The U.S. currency traded slightly up on the day at 106.30 yen, having earlier sunk to a new 15-month low of 105.52 yen.
“For dollar/yen in particular, we’re seeing a tendency towards a stronger yen, despite easy monetary policy in Japan,” said Harajli. “It seems like the markets are beginning to test the BOJ’s resolve.”
Sterling was last at $1.402 down from a weekly high of $1.414.
Related news releases
- 18.05.2018Ambassador: Tajikistan attaches particular importance to ecological and health tourism
- 14.05.2018Fifteen countries’ citizens to be able to obtain visas at Azerbaijan’s airport from tomorrow
- 11.05.2018Ilham Aliyev: Azerbaijan to create modern tourism industry
- 10.04.2018More than 627,000 tourists visit Azerbaijan this year
- 07.04.2018Ruslan Guliyev elected president of Global Healthcare Travel Council
- 06.04.2018President Ilham Aliyev views AITF 2018 fair
- 05.04.2018Minister: Number of tourists increases by 12.5% this year
- 04.04.2018President Ilham Aliyev receives Secretary-General of World Tourism Organization
- 29.03.2018President Ilham Aliyev: Azerbaijan expects great tourist flow
- 02.02.2018Minister: Russia builds ships for cruise on Caspian Sea
- 31.01.2018President issues decree on improvement of visa issuance procedure for foreigners in airports
- 31.01.2018Minister: Reputation of Azerbaijan’s tourism lowered after cancellation of licences
- 30.01.2018President Ilham Aliyev views plans to develop Shahdagh tourism complex
- 08.01.2018Kvartal-95 humor group holds concert in Gabala
- 05.01.2018XII International Veselo Humour and Music Festival kicks off in Gabala
- 29.12.2017Azerbaijan to issue e-visa for tourists in three hours
- 19.12.2017Azerbaijan, Czech Republic may relaunch direct flights
- 14.12.2017Azerbaijan to issue e-visa for tourists in three hours
- 11.12.2017Foreigners spend AZN 871.6M in Azerbaijan this year
- 11.12.2017Nearly 2.5 million tourists visit Azerbaijan in January-November 2017
- 07.12.2017Ilham Aliyev: 250,000 foreigners came to Azerbaijan using "ASAN visa" this year
- 18.11.2017Agreement on Azerbaijan’s participation in EXPO 2020 Dubai signed
- 10.11.2017Bahram Bagirzade: Everyone should do their best to promote Shopping Festival
- 07.11.2017Azerbaijan, Ajaristan discuss preparation of tourism packages
- 19.10.2017Minister: More tourists now traveling to Azerbaijan by bus and car
- 18.10.2017Deputy Minister: Hotels’ requirement of marriage certificate is illegal
- 12.10.2017Abulfas Garayev: Second Shopping Festival will stimulate tourist flow to Azerbaijan
- 11.10.2017Foreign tourists have spent 1.3 bln manats in Azerbaijan this year
- 10.10.2017Program of fourth Baku International Tourism Film Festival announced
- 02.10.2017Safari Park created in Azerbaijan
- 29.09.2017Georgia’s revenues from tourism near $400M
- 27.09.2017Minister of Culture and Tourism comments on reactions to behavior of tourists in Azerbaijan
- 27.09.2017Minister:Nearly 2 million tourists visited Azerbaijan this year
- 11.09.2017New rector appointed to Azerbaijan Tourism and Management University
- 30.08.2017Azerbaijan enters TOP-5 most popular destinations among Russian business travelers
- 15.08.2017Presentation held in Baku of Astana’s tourist potential
- 10.08.2017Qatar facilitates visa regime for Azerbaijani citizens
- 17.07.2017More than 243,000 Azerbaijani citizens travelled to Turkey this year
- 12.07.2017President: There will be even more tourists, we must be ready
- 13.06.2017Number of tourists travelling to Azerbaijan increased 24.5%
- 05.03.2018Georgia sees decline in tourist arrivals from Azerbaijan last month
- 12.03.2018Azerbaijan, India negotiating to organize direct flights
- 14.03.2018Pullman Baku Hotel hosts presentation of The M.O.S.T. magazine’s Art issue
- 16.02.2018Ambassador: I hope number of people traveling from Italy to Azerbaijan will increase
- 09.02.2018Four countries to launch cruises on Caspian Sea from next year
- 06.02.2018Number of Azerbaijani citizens visiting Georgia’s protected territories announced