The dollar weakened for the fourth consecutive week against major currencies, and investors believe the US central bank will end its rate hike cycle soon.
The dollar index, which shows the movement of the US dollar against the other six most important world currencies, slipped 0.5 percent last week to 102.09 points.
At the same time, the dollar weakened by 0.6 percent against the European currency, so the price of the euro reached $1.0905. The dollar slipped 0.5 percent against the Japanese currency to 132.15 yen.
The US dollar index also weakened last week as investors believe the cycle of interest rate hikes by the US central bank is ending.
The latest macroeconomic data show, namely, that the growth of the American economy is gradually slowing down, that inflationary pressures are easing, that consumption is slowly weakening, and that the labor market is gradually ‘cooling down.’
All of this means that the Fed may soon end its tightening cycle.
The banking crisis increased the prospects for a recession in the US
The US banking crisis that rocked global markets last month is likely ending, even if there are some more unforeseen setbacks, JPMorgan Chase CEO Jamie Dimon said.
Only a handful of lenders have the problems that have brought down the Silicon Valley bank. When the industry starts reporting quarterly earnings next week, the numbers will likely be good, Dimon said in an interview with CNN, Bloomberg reported.
When asked if some more banks might fail, he said that he did not know.
The CEO also said it’s okay for a bank in the system to fail if it somehow prevents a domino effect.
Dimon, 67, has led JPMorgan since 2005 and is the only executive from the 2008 financial crisis still in charge of a major bank. In a CNN report earlier Thursday, he said the recent turmoil in the financial industry probably made a US recession more likely, although a downturn would not necessarily happen.
