The dollar has declined by around one percent from its highest level in 20 years against other major currencies at the beginning of a week that will see dozens of decisions from central banks, notably the Federal Reserve (the U.S. central bank) on Wednesday, followed by the Bank of Japan and the Bank of England the next day.
The dollar index, which measures the performance of the dollar against six major currencies, rose by 0.09 percent on Friday to 109.66, stabilizing after two volatile weeks that saw it hit 110.79 on September 7 for the first time since mid-2002, and then drop to 107.67 six days later.
Investors have been oscillating due to economic data indicating at times that the Federal Reserve might slow its interest rate hikes to mitigate damage to the economy and the risk of recession, only for inflation to then show signs of continuing to rise rapidly.
Strategists at the Commonwealth Bank of Australia noted in a memo that poor economic outlooks will keep the euro, the British pound, and other currencies like the Australian dollar under pressure.
The dollar had little change, recording 142.905 Japanese yen, stabilizing after rising to a 24-year high of 144.99 earlier this month. The British pound remained steady at 1.1426 U.S. dollars after falling to its lowest level in 37 years at 1.1351 dollars on Friday. The euro showed little change at 1.00075 dollars, continuing a week of consolidation after fluctuating between its lowest levels in 20 years at 0.9864 dollars on September 6 and its highest level in about a month at 1.0198 dollars a week ago.
