By Gina Lee
Investing.com – The dollar was down on Friday morning in Asia and was set for a second week of declines even as upbeat economic data gave the U.S. currency an earlier boost.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.04% to 93.718 by 10:57 PM ET (2:57 AM GMT).
The USD/JPY pair inched up 0.08% to 114.07, with data released earlier in the day in Japan showing that the national core consumer price index (CPI) grew 0.1% year-on-year in September. The national CPI grew 0.4% month-on-month and 0.2% year-on-year .
Data released on Thursday in the U.S. said that existing home sales rose to a rate of 6.29 million units in September, a growth of 7% month-on-month . The better-than-expected data gave the dollar a boost, which it held onto as the Asian session opened.
However, some investors were concerned, with the dollar index down 0.18% for the week and set to post a second week of declines.
"People are wondering whether we are at an inflection point, as the dollar has been weakening and that doesn't really fit with the broader narrative that global growth is cooling and the U.S. Federal Reserve is on the path to asset tapering, which should be supportive for the dollar," HSBC global head of FX research Paul Mackel told Reuters.
Meanwhile, a rally in commodity currencies slowed down late on Thursday and continued as the Asian session opened as traded reaped the profits, according to analysts. The Canadian dollar slipped to C$1.2369 per U.S. dollar, off Thursday's C$1.2287, at a level not seen since June 2021. The Australian dollar also gave up some gains, buying $0.7455, off Thursday's three-month high.
"The ever-aggressive intervention by China in coal markets has had a significant impact on pricing in the energy sector... so we are not surprised to see a reasonable Australian dollar correction from very overbought levels," Westpac analysts said in a note.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.