In
cryptocurrency markets, the price of bitcoin topped $60,000 for
the first time in six months and was not far from its record
high on bets U.S. regulators will approve a bitcoin futures
exchange traded fund.
The dollar index slipped 0.1% to 93.9 and was down 0.2% for the
week in what would be its first weekly loss in six weeks. The
greenback tends to rise when investors seek safety.
Global stock markets have rallied this week as fears about a
stagflationary economy have been eased by forecast-beating
corporate earnings in the United States.
The Japanese yen was the biggest loser, dropping to as low as
114.4 yen per dollar, its weakest since October 2018. The yen is
a safe-haven currency and has been knocked by the rebound in
sentiment including in Asia.
The dollar was last 0.5% higher at 114.31 yen -- that brought
week-to-date gains for the greenback of 1.9% in what would mark
the worst week for the yen since March 2020.
Analysts said investors who were long in dollars had been
squeezed out of their positions in the past few days, and
inflation data did not support a further rise in the currency.
"The lack of any upside surprise in U.S. CPI (consumer price
inflation) data and confirmation of existing expectations on Fed
tapering in the minutes provided no catalyst for additional USD
buying and hence the sell-off," said MUFG analyst Derek Halpenny.
The greenback had rallied since early September on expectations
the U.S. central bank would tighten monetary policy more quickly
than previously expected amid an improving economy and surging
energy prices.
Minutes of the Fed's September meeting confirmed this week that
a tapering of stimulus is all but certain to start this year,
although policymakers are sharply divided over inflation and
what they should do about it.
Money markets are currently pricing in about 50/50 odds of a 25
basis point rate hike by July.
The next gauge for the U.S. economy's health comes later on
Friday with the release of retail sales figures.
The euro edged up 0.1% to $1.1611 after touching $1.1624 on
Thursday for the first time since Sept. 4.
Sterling rose 0.5% to $1.3741 following its climb to the highest
since Sept. 24 at $1.3734 overnight.
The risk-sensitive Aussie dollar added 0.2% to $0.7428 before
the gains fizzled.
New Zealand's kiwi dollar jumped 0.4% to as high as $0.7065,
extending Thursday's 1% surge.
(Editing by Emelia Sithole-Matarise and Edmund Blair)
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