# Dollar on track for best month since 2015
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-29
Category: TRADING
Category URL: https://financedigest.com/category/trading
Meta Title: Dollar slips from 20-year highs against currencies, still on
Meta Description: Stay updated on the latest forex news as concerns about the global economy and hawkish Fed drive greenback demand. Expert insights on currency trends and market
URL: https://financedigest.com/dollar-on-track-for-best-month-since-2015html

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By Karen Brettell

NEW YORK (Reuters) – The dollar slipped from 20-year highs against a basket of currencies on Friday but remained on track for the best month in seven years as concerns about the global economy and a hawkish Federal Reserve bolstered demand for the greenback.

The dollar hit a 20-year high against the yen on Thursday, as the Japanese currency was hurt by dovish Bank of Japan policy. It also [hit a five-year high against the euro](https://www.financedigest.com/pound-hits-10-month-peak-euro-up-as-dollar-under-pressure.html "Pound hits 10-month peak, euro up as dollar under pressure"), which has dropped sharply since Russia’s invasion of Ukraine, with investors concerned about Europe’s energy security, inflation and growth.

“The broad story is obviously we’ve [seen some broad-based dollar](https://www.financedigest.com/dollar-bounces-as-fed-seen-keeping-up-aggressive-rate-hikes.html "Dollar bounces as Fed seen keeping up aggressive rate hikes") strength,” said Vassili Serebriakov, an FX strategist at UBS in New York. “There is a general story, which has more to do with concerns about the global cycle and that helps the [dollar through risk](https://www.financedigest.com/u-s-dollar-advances-vs-major-currencies-as-risk-appetite-fades.html "U.S. dollar advances vs major currencies as risk appetite fades") aversion, but then there are some idiosyncratic stories like dollar/yen.”

Concerns about global growth have increased as [China enacts lockdowns in a bid](https://www.financedigest.com/analysis-no-china-no-deal-bid-to-break-sovereign-debt-logjams-gets-weary-thumbs-up.html "Analysis-No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up") so stop the spread of COVID-19.

[China’s capital Beijing closed more businesses](https://www.financedigest.com/lighting-maker-signify-cuts-2022-outlook-again-on-china-business-lighting.html "Lighting maker Signify cuts 2022 outlook again on China, business lighting") and residential compounds on Friday, with authorities ramping up contact tracing to contain a COVID-19 outbreak, while resentment at the month-long lockdown in Shanghai grew.

The dollar index against a basket of currencies was last 103.28, after reaching 103.93 on Thursday, which was the highest [since Dec](https://www.financedigest.com/euro-zone-economy-sentiment-rises-in-dec-first-time-since-start-of-ukraine-war.html "Euro zone economy sentiment rises in Dec, first time since start of Ukraine war"). 2002\. It is on track for a 5.1% monthly gain, the [largest since](https://www.financedigest.com/first-quarter-dash-for-cash-largest-since-early-2020-bofa.html "First quarter ‘dash for cash’ largest since early 2020 -BofA") Jan. 2015.

The yen was last 130.15, after reaching 131.24 on Thursday, the weakest since April 2002. The dollar has gained 7% against the Japanese currency this month, and is on [track for the best month since](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010") Nov. 2016.

The euro was $1.0523, after dropping to $1.0470 on Thursday, the [lowest since](https://www.financedigest.com/uk-mortgage-approvals-hit-lowest-since-june-2020.html "UK mortgage approvals hit lowest since June 2020") Jan. 2017. The single currency is on track to lose 4.90% this month, the most since Jan. 2015.

The greenback [pared some losses](https://www.financedigest.com/russian-stocks-to-pare-some-heavy-losses-by-year-end-reuters-poll.html "Russian stocks to pare some heavy losses by year-end – Reuters poll") after data on Friday showed that U.S. consumer spending increased more than [expected in March amid](https://www.financedigest.com/dollar-set-for-weekly-loss-amid-expectations-fed-will-slow-hikes.html "Dollar set for weekly loss amid expectations Fed will slow hikes") strong demand for services, while monthly inflation surged by the most since 2005.

The Fed is [expected to raise rates by 50 basis points and announce plans to reduce its $9 trillion balance sheet when it concludes its two-day meeting on Wednesday as it tackles soaring inflation](https://www.financedigest.com/dollar-drops-as-inflation-cools-more-than-expected.html "Dollar drops as inflation cools more than expected").

Fed funds futures [traders are pricing for the fed funds rate](https://www.financedigest.com/dollar-hits-one-month-high-against-yen-as-traders-bet-on-fed-rate-hike.html "Dollar hits one-month high against yen as traders bet on Fed rate hike") to rise to 2.86% by year-end, from 0.33% now.

Still, some analysts note that markets have already priced in aggressive Fed tightening, which could dampen future Treasury yield increases and [dollar gains](https://www.financedigest.com/dollar-trims-gains-vs-euro-after-u-s-inflation-data.html "Dollar trims gains vs euro after U.S. inflation data").

We already have huge degrees of tightening priced into the [dollar](https://www.financedigest.com/sterling-slides-as-bets-for-aggressive-u-s-tightening-boost-dollar.html "Sterling slides as bets for aggressive U.S. tightening boost dollar") curve – I’m not sure we will be able to meet that scale or scope of Fed tightening,” said Jeremy Stretch, head of G10 FX strategy at CIBC.

The [British pound](https://www.financedigest.com/british-pound-drops-as-investors-seek-safety-on-freedom-day.html "British pound drops as investors seek safety on ‘Freedom Day’") rose to $1.2537, after dropping to $1.2410 on Thursday, the weakest since July 2020. It is on track for a 4.5% loss this month, the [largest since](https://www.financedigest.com/dash-unveils-largest-software-upgrade-since-inception.html "Dash unveils largest software upgrade since inception") Oct. 2016. \[GBP/\]

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[Currency bid](https://www.financedigest.com/evergrande-jitters-pull-risk-currencies-lower-dollar-gains-on-safety-bid.html "Evergrande jitters pull risk currencies lower, dollar gains on safety bid") prices at 9:52AM (1352 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

[Dollar index](https://www.financedigest.com/dollar-index-jumps-after-u-s-retail-sales-show-surprise-rebound.html "Dollar index jumps after U.S. retail sales show surprise rebound") 103.2800 103.6300 -0.33% 7.962% +103.6300 +102.8100

Euro/Dollar $1.0523 $1.0500 +0.22% -7.44% +$1.0593 +$1.0492

Dollar/Yen 130.1500 130.7950 -0.49% +13.06% +130.9450 +129.7700

Euro/Yen 136.95 137.33 -0.28% +5.09% +137.9800 +136.9500

Dollar/Swiss 0.9712 0.9719 -0.08% +6.46% +0.9736 +0.9681

Sterling/Dollar $1.2537 $1.2463 +0.62% -7.28% +$1.2585 +$1.2455

Dollar/Canadian 1.2746 1.2809 -0.48% +0.82% +1.2812 +1.2720

Aussie/Dollar $0.7151 $0.7098 +0.78% -1.59% +$0.7179 +$0.7090

Euro/Swiss 1.0218 1.0204 +0.14% -1.46% +1.0266 +1.0202

Euro/Sterling 0.8391 0.8426 -0.42% -0.10% +0.8432 +0.8385

NZ $0.6520 $0.6489 +0.50% -4.72% +$0.6543 +$0.6486

Dollar/Dollar

Dollar/Norway 9.2905 9.4165 -1.31% +5.49% +9.4125 +9.2515

Euro/Norway 9.7770 9.8865 -1.11% -2.36% +9.8950 +9.7504

Dollar/Sweden 9.7939 9.8754 -0.54% +8.61% +9.8895 +9.7364

Euro/Sweden 10.3061 10.3616 -0.54% +0.70% +10.3863 +10.2877

(Additional reporting by [Elizabeth Howcroft in London; Editing by Nick Zieminski)](https://www.financedigest.com/34315plane-carrying-coffin-of-queen-elizabeth-lands-in-london.html "Plane carrying coffin of Queen Elizabeth lands in London")


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