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NEW YORK — The US dollar edged lower with US Treasury yields on Friday, with
investors looking ahead to next week’s Federal Reserve meeting for more clarity on the US outlook for rate
hikes.
Expectations that the Fed will tighten monetary policy at a faster pace than previously anticipated had
driven a rise in yields and the dollar earlier this week, and the US dollar index remained on track
for its biggest weekly percentage gain since mid-December.
US Treasury yields fell Friday as concerns about potential conflict in Ukraine dented risk appetite.
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Markets are pricing in as many as four rate hikes this year, starting from March and expect the Fed to
start trimming its $8 trillion-plus balance sheet within months. Next week’s Fed meeting could shed some
light on how fast it will tighten.
“Everything is going to be somewhat calm” until the Fed releases its statement on Wednesday after the
two-day meeting, said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.
“It makes sense the dollar is somewhat muted today given the lack of real impetus from the data front.”
The dollar index, which tracks the greenback against major peers, was down 0.2% on the day at 95.555 but
up 0.4% for the week so far.
In cryptocurrencies, bitcoin was also dragged lower, and was last down more than 4%.
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Against the yen, the dollar was last down 0.3% at 113.685, while the euro was up 0.3%
again the dollar at $1.1311.
Retail sales in Britain added recent weaker economic data. The pound was down 0.3% against the dollar at
$1.3556.
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Currency bid prices at 10:53AM (1553 GMT)
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 95.5550 95.7650 -0.21% -0.113% +95.8400 +95.4910
Euro/Dollar $1.1348 $1.1311 +0.33% -0.18% +$1.1360 +$1.1301
Dollar/Yen 113.6850 114.0900 -0.33% -1.23% +114.1500 +113.6000
Euro/Yen 129.00 129.04 -0.03% -1.01% +129.3000 +128.5700
Dollar/Swiss 0.9113 0.9173 -0.65% -0.10% +0.9172 +0.9108
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Sterling/Dollar $1.3556 $1.3593 -0.28% +0.23% +$1.3602 +$1.3546
Dollar/Canadian 1.2526 1.2504 +0.21% -0.90% +1.2554 +1.2498
Aussie/Dollar $0.7202 $0.7227 -0.35% -0.93% +$0.7229 +$0.7183
Euro/Swiss 1.0339 1.0374 -0.34% -0.29% +1.0377 +1.0336
Euro/Sterling 0.8369 0.8315 +0.65% -0.37% +0.8376 +0.8316
NZ $0.6729 $0.6755 -0.40% -1.70% +$0.6758 +$0.6708
Dollar/Dollar
Dollar/Norway 8.8790 8.8390 +0.48% +0.81% +8.9120 +8.8105
Euro/Norway 10.0777 9.9912 +0.87% +0.65% +10.1141 +9.9814
Dollar/Sweden 9.1694 9.2234 -0.27% +1.68% +9.2434 +9.1534
Euro/Sweden 10.4065 10.4349 -0.27% +1.68% +10.4476 +10.3838
(Additional reporting by Iain Withers and Sujata Rao in London and Kevin Buckland in Tokyo; Editing by Hugh
Lawson, Susan Fenton and Richard Chang)
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