The US Dollar experienced mixed movements against major currencies on Friday, as hawkish expectations for the Federal Reserve contrasted with signs of easing momentum. According to FX Street, the USD/JPY pair traded near 161.00, down slightly after hitting a two-year peak of 161.81 on Thursday, ending a five-day winning streak for the greenback.
Meanwhile, USD/CHF extended gains near seven-month highs following a rise to over one-year highs, reflecting continued strength in the Swiss Franc. The New Zealand Dollar weakened against the US Dollar, with NZD/USD dropping 0.28% to around 0.5740. The British Pound showed some recovery, trading at 1.3226, up 0.18% after earlier hitting a three-month low of 1.3163, though it is still set to close the week with a 1.25% loss. EUR/USD bounced from a three-month low of 1.1417 to trade near 1.1470 on Friday.
For Japanese investors, these movements underscore the importance of monitoring USD/JPY volatility as the Bank of Japan continues its ultra-loose monetary policy amid global rate tightening.