The world’s reserve currency was on track for its best week in a month against major rivals on Friday. The U.S. dollar held its ground amid a selloff of riskier assets across markets.
The dollar index which tracks the U.S. currency against six major peers dropped 0.1% to 95.655. Still, the index was on track for a 0.5% weekly gain, its best performance since mid-December.
The greenback eased on Friday as U.S. Treasury yields slipped back after a recent sharp rise that was fuelled by expectations that the central bank will tighten monetary policy at a faster pace than expected.
Risk-sensitive currencies fell, while those seen as safe havens such as the Japanese yen and Swiss franc strengthened.
The Australian dollar dropped more than 0.5% versus the U.S. currency to $0.71860. The New Zealand dollar declined more than 0.% against the greenback to $0.67100.
Dollar, franc, yen, and other currencies
The Swiss franc gained 0.4% to 0.91350 franc per dollar. The Japanese yen gained as much as 0.4% to 113.625 yen per dollar. Interestingly, the yen was last up 0.1% after losing some momentum.
Poor retail sales in the U.K. added to a recent flow of weaker economic data. In the last month of the year, sales fell 3.7% as customers did much of their Christmas shopping earlier and many consumers stayed home due to the omicron variant of Covid-19.
The British pound declined 0.2% against the dollar to $1.35635, and as much as 0.5% versus the euro. The pound fell to 83.61 pence per euro.
Bitcoin also declined on Friday. The world’s biggest cryptocurrency in terms of market capitalization fell to $38,250, its worst result since August.