The dollar retreated from its two-and-a-half-month high against the Japanese yen on Friday, putting it on track for its largest weekly loss since mid-January. The dollar index, which measures the greenback against a basket of major world currencies, 0.3% to 104.60, having previously hit a weekly high of 105.36.
So far this week, the dollar index declined by 0.5%, making for its largest percentage fall since January 6. The euro rose 0.3% against the dollar to $1.0628, recovering from its almost two-month low of $1.0533. The sterling advanced 0.7% against the dollar to $1.2032, putting itself on course for a 0.4% gain for the week. This marks the pound’s best weekly performance since the work week ending January 20.
According to analysts, the dollar’s decline comes as optimistic U.S. economic data has boosted investors’ hopes of a higher terminal fed funds rate.
Bitcoin plunged by 4.9% to $22,306, just above its two-and-a-half-week low of $22,000. Other cryptocurrencies followed suit, with Ether dropping 5.4% to $1,559. The cryptocurrency decline comes as the Silvergate Bank crisis worsens, leading to industry leaders such as Coinbase Global and Galaxy Digital dropping the lender as their banking partner.