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Dollar Stays Subdued Against Major Rivals

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The U.S. dollar is exhibiting a mixed trend against its major counterparts Friday evening, with traders closely monitoring the developments on the geopolitical front and digesting the latest batch of economic data from across the globe.

After a weak spell that lasted till noon, the dollar index is moving along the flat line all through this afternoon.

The dollar index is at 98.82, up marginally from the previous close of 98.79.

The dollar briefly firmed against most of its peers as U.S. treasury yields rose amid growing expectations that the Federal Reserve will tighten monetary policy aggressively to curb high inflation.

In the European Union summit in Brussels, the U.S. and the bloc reached a deal to boost supplies of liquified natural gas to Europe by the end of the year.

Investors are pricing in half-point rate hikes in both May and June following hawkish comments from Fed Chair Jerome Powell earlier this week.

Chicago Fed President Charles Evans said Thursday he’s “comfortable” with raising rates in quarter-point increments, while being “open” to a 50 basis-point move if needed. Evans expects six more 25 basis point increases in the central bank’s policy interest rate by the end of the year and three more next year, putting the Fed funds rate in a range of 2.75- 3 percent by the end of 2023.

In economic news today, the National Association of Realtors said its pending home sales index tumbled by 4.1% to 104.9 in February after plunging by 5.8% to a revised 109.4 in January. Economists had expected the index to rebound by 1%.

Meanwhile, revised data released by the University of Michigan showed consumer sentiment in the U.S. fell by more than initially estimated in the month of March. The report showed the consumer sentiment index for March was downwardly revised to 59.4 from the preliminary reading of 59.7. Economists had expected the index to be unrevised.

With the unexpected downward revision, the consumer sentiment was at its lowest level since hitting 55.8 in August of 2011.

The dollar is firm against the Euro at $1.0985, gaining from $1.0997.

Against Pound Sterling, the dollar is up marginally at $1.3185, after having dropped to $1.3225 earlier in the day.

The dollar is trading at 122.18 yen, compared with the closing value of 122.37 yen on Thursday.

Against the Aussie, the dollar is at 0.7520, down slightly from 0.7514.

The Swiss franc is at 0.9309 a dollar, down marginally from 0.9302. Meanwhile, the Loonie is trading at 1.2474 a U.S. dollar, firming from 1.2528.

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