The US dollar continued to show a recovery in the European session but was on track for its first decline in six weeks as the market headed for the weekend.
The Federal Reserve’s (Fed) decision to raise interest rates was supposed to support the U.S. dollar, but because investors had placed positions earlier before the meeting took place, the king of the currency slipped to a one -week low.
The euro fell back from its previous two -week high following the rise of the US dollar. The currency had previously risen after data published on Thursday showed European inflation soaring.
Meanwhile, the yen’s safe haven continued to lose traction after the outcome of a meeting of the Central Bank of Japan (BOJ) that maintained interest rates and investor optimism over Ukraine-Russia peace talks.
Investors are now looking forward to talks between US President Joe Biden and Chinese President Xi Jinping who will hold a phone call on Friday.
The two leaders are expected to discuss the country's bilateral relations and geopolitical issues of Ukraine and Russia. The US has previously warned China not to support Russia.
Meanwhile, the pound still failed to erase the losses recorded after the Bank of England (BOE) signaled to slow tightening after raising interest rates three times.
On the other hand, the Aussie dollar and kiwi eased slightly after soaring higher following recent expectations that the Central Bank of China (PBOC) may maintain its monetary policy amid economic uncertainty.
