Dollar takes firm footing as hawkish ECB supporters fear economic downturn

TOKYO (Reuters) – The safe-haven dollar held below monthly highs against the yen on Friday and held steady amid growing worries Continued tightening of monetary policy by the world’s largest central bank could trigger a recession, gaining overnight relative to its peers. ECB President Christine Lagarde says board hikes rates again overnight after policy, ‘it’s not enough’, bank Must “continue to fight inflation at a steady pace”.

A day earlier, the Fed also added that Fed Chairman Jerome Powell added that policymakers expect interest rates to rise and remain high for longer. time. ” It was a big night for markets, with modest Wednesday’s ‘risk-off’ response to the Fed seen as a bigger than expected outcome It was slightly hawkish, and the message from the ECB meeting greatly exacerbated that reaction,” said Ray Attrill, head of FX strategy at National Australia Bank (OTC: 6677NABZY

), in notes wrote.

This500 U.S. dollar index , measures the currency against the euro, yen and four other currencies The exchange rate is slightly 0. % down to 30.06 in early Asian trade, but at 0.

after% surged overnight, the biggest gain since late September.

While the dollar has had a volatile week, it is on track to reach 0 eventually. 06% recession.

US dollar climbed to

. Yen Thursday for the first time since November , the day ends with 1.

% get. On Friday, it fell back to 0. % to34.01 JPY.

Euros increase by 0.% to $1. 99, rebounding slightly from 0 on Thursday. 08%retreat.

Sterling is also part of the US dollar index, up 0.% to $1. 1000,follow 1.45% plummeted the day before.

The Bank of England also raised its key interest rate on Thursday and said further hikes were likely. However, investors are betting that the Bank of England may be nearing the end of its rise in borrowing costs. The risk-sensitive Australian dollar steadied a day earlier on Friday after sharp losses.

AUD is 0.% up to $0. 500, restore 2 .06% swipe overnight to see it touch $0.100 for the first time since December 7th

New Zealand dollar rebounded 0.% to $0. 137 Below is 1.30% plummeted on Thursday, dropping to $0. 138 , also for the first time since December 7th. 1000