The dollar was regaining its foothold early Monday thanks to relief at North Korea inaction. During the trading hours on Friday, the dollar continued to trade near the 32-month low. Statements by Federal Reserve representatives about future interest rate policies have further worsened the US currency.
During his speech at the end of the week, William Dudley, who is chairman of the Fed for New York, said that with lesser confidence the Fed should continue to raise its key interest rate. Dudley is one of the influential supporter of rising interest rates, which is why the uncertainty he expresses is interpreted as a declining chance for the US central bank to make third-quarter interest rates this year.
As a result, the dollar retreated to a 10-month low against the yen, reaching 107.33 yen per dollar. On a weekly basis, the Japanese currency gained 2.2% against US money. The Swiss franc rose by about half a percent to 0.9465. The yen and franc have seen significant increases against green money amid tensions on the Korean Peninsula of nuclear weapons.
The dollar index, measuring the dollar’s performance against the basket of six major currencies, fell 0.2 percent to 91.26 points. At the same time, the euro reached its highest level since January 2016 to 1.2092 dollars per euro. The single currency, however, failed to hold positions and ended the day with a modest growth of 0.07% to 1.2031.
Gold continued to show upbeat performance after unsatisfactory comments from the Fed. The spot price of precious metal grew by 0.15 per cent to $1 352.28 per troy ounce. The metal finished the week with a 1.7% growth. Futures with a delivery term in December rose 0.9% to $1 351.20.
Other precious metals recorded a negative session. Silver fell 0.3 percent to $18.02 an ounce after it gained 18.21 earlier this day, the highest level since April. The metal finished the week with a decline of 2.1%. Platinum fell 0.88% to $1,006.60. Earlier in the trading session the noble metal hit its highest level in March at 1,022.70.