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The dollar is heading for its best week against the yen in 3 months

The dollar is headed for its best week against the yen in three months today after Federal Reserve Chairman Jerome Powell and a group of US central bank officials dashed market expectations that interest rates had peaked.

الدولار يتجه لتحقيق أفضل أسبوع مقابل الين في 3 أشهر

As for cryptocurrencies, Bitcoin and Ether settled near their highest levels in several months with renewed speculation about the imminent approval of a Bitcoin exchange-traded fund, breathing new life into digital assets.

A large number of Federal Reserve policymakers, including Powell, said they are still not sure that interest rates are high enough to end the battle against inflation, comments that markets saw as hawkish and led to a rise in the US currency, according to Reuters.

The dollar settled near the highest level in a year at 151.355 yen today and touched its highest levels in a week against the Australian and New Zealand dollars.

“Powell’s speech was very hawkish and that really affected sentiment,” said Tina Ting, market analyst at CMC Markets.

The US Federal Reserve officials' statements came after a week of keeping interest rates unchanged and strengthening expectations that they had peaked, causing the dollar and Treasury yields to decline in the aftermath.

However, the dollar regained its footing this week and is on track to record weekly gains of about 1.3 percent against the yen, its best performance since August.

While the Australian and New Zealand dollars are heading towards incurring weekly losses of 2.3 percent and 1.75 percent, respectively, against the dollar, their largest decline in months.

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