The dollar index held its recent decline to 98 on Friday and was headed for its first down week in six, languishing near a one-week low as investors continued to assess the impact of the Federal Reserve’s measured move to tighten monetary policy.
The greenback weakened even after the Fed delivered its first interest rate hike since 2018 and signaled the equivalent of a quarter-point increase at each of its six remaining policy meetings this year to combat inflation. The Fed has also downgraded its GDP estimate for 2022 to a 2.8% expansion from the 4% it predicted in December, citing high prices and economic disruptions from the war in Ukraine.
Meanwhile, investors continued monitoring the ongoing ceasefire talks between Russia and Ukraine after officials from both countries said their positions remained far apart as the war entered its fourth week.
