In Friday’s trading session, the value of the euro was not able to find a strong ground against the dollar. The value of the euro has ended up falling below the parity level as it dwindled on Friday.
ECB Toning Down on Interest Hikes
It was on Friday when the European Central Bank officials made an announcement about the interest rate hikes. As per the officials, they would slow down in terms of interest rate hikes.
The decision has been made by the European Central Bank, which is a positive indication for the locals. However, it is exerting a negative impact on the trading value of the euro.
With the interest rates not rising, the value of the euro is destined to slide. This is the reason why the euro has ended up losing parity against the value of the dollar.
The Yen is Holding Steady
While the trading price of the euro has slipped, the yen has found itself quite fortunate as its price has not moved south.
The trading price of the Japanese yen has remained steady due to two factors. The first factor is the intervention by the Finance Ministry of Japan.
The second factor is the new policy that the Central Bank of Japan is expected to announce. As per reports, the Bank of Japan is going to announce the new policy in the month of December or January.
However, the new policy has managed to create a lot of hype and anticipation among investors. Therefore, the investors are holding steady to their investments in the Japanese yen.
As there is not much buying or selling, the value of the Japanese yen seems to have remained stable.
Price Action of Euro
The data shows that the trading price of the euro slipped by 0.05% versus the dollar. Following the dip, the value of the euro has fallen to $0.9960 versus the greenback.
The euro had already suffered an over 1% dip a day earlier in value as the ECB announced that the Interest rate hike was 75 bps.
However, the ECB also announced that it would lowest the interest rates in near future.
Value of the DXY
In the latest trading sessions, the DXY recorded an upward movement. The data shows that the DXY saw an overall rise of 0.06% on Friday against the basket of six major currencies.
Following the increase, the average price of the USD versus the basket of six currencies is 110.62. Over the night, the trading price of the USD had surged 0.08% versus the six basket currencies
The report further shows that the value of the Japanese yen rose by 1% against the dollar. After experiencing the surge, the value of the Japanese rose to 146.41 per dollar.