The U.S. dollar strengthened against several major currencies as markets came to a close on Friday. This comes as economists and investors continue to express concern over the lingering uncertainty pertaining to the banking sector.
The dollar index rose 0.536% at 103.140, with the euro sliding by 0.71% to $1.0753. The British pound was down 0.53% to $1.222; cooling from its seven-week high of $1.2341 during the previous session. This came after the Bank of England raised interest rates by 25 basis points on Thursday. The BoE speculated that the recent uptick in inflation would be short-lived, thereby sparking speculation that its interest rate hiking agenda could be drawing to a close.
Banking stocks have plummeted this month following the collapse of the U.S.-based Silicon Valley Bank and Signature Bank, beginning the global banking crisis. This week saw the emergency sale of Credit Suisse to UBS in a last-ditch effort to save the 167-year-old banking institution.
Several major banking stocks have plummeted since the start of the ongoing banking turmoil, including European heavyweights Deutsche Bank and UBS Group.