© Reuters. Dollar falls to 1-week low against safe haven yen
Investing.com – The dollar ended the week slightly higher against a currency basket on Friday as upbeat U.S. data underlined the case for the Federal Reserve to raise interest rates at its upcoming meeting this week.
A report on Friday showed that U.S. industrial production jumped in February, boosted by robust increases in output at factories and mines.
A separate report showed that an index of U.S. consumer sentiment rose in March.
The data offset another report showing that U.S. housing starts declined more than expected last month.
The Fed is widely expected to raise rates by a quarter point at the conclusion of its two-day policy meeting on Wednesday, with investors focusing on any indications as to the pace of monetary policy tightening for the remainder of the year.
The , which measures the greenback’s strength against a basket of six major currencies, was at 90.17 in late trade. The index ended the week up 0.17%.
The euro was a touch lower against the dollar, with slipping 0.12% to 1.2290.
But the dollar fell to a one-week low against the safe haven yen amid concerns that more top Trump administration officials could be ousted from the White House and worries over the economic impact of U.S. trade tariffs.
was down 0.31% at 106.00 in late trade after falling as low as 105.60 earlier, and ended the week down 0.84%.
Sterling was little changed against the U.S. currency late Friday, with last at 1.3942.
In the week ahead, the G20 meeting in Argentina and the threat of trade wars will be in focus ahead of the Federal Reserve announcement on Wednesday.
Sterling could remain vulnerable with policy risks from Brexit in focus as investors eye an upcoming European Union summit and a Bank of England policy meeting.
Euro zone private sector survey data will also be watched closely amid speculation over how soon the European Central Bank will start to scale back stimulus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 19
Finance ministers and central bank governors from the world’s twenty largest economies are due to meet in Buenos Aires.
Tuesday, March 20
The Reserve Bank of Australia is to publish the minutes of its latest policy setting meeting. Australia is also to publish data on house price inflation.
The UK is to publish data on inflation.
The ZEW Institute is to report on German economic sentiment.
The G20 summit in Buenos Aires is to continue for a second day.
Wednesday, March 21
Financial markets in Japan will be closed for a holiday.
The UK is to publish its latest employment report.
The U.S. is to report on existing home sales.
The Fed is to announce its latest monetary policy decision and publish its rate statement, which outlines economic conditions and the factors affecting the decision.
Thursday, March 22
The Reserve Bank of New Zealand is to announce its latest monetary policy decision.
Australia is to publish its latest employment report.
The euro zone is to release data on manufacturing and service sector activity.
The UK is to release data on retail sales. Later in the day, the Bank of England is to announce its rate decision.
The U.S. is to publish the weekly report on jobless claims.
Friday, March 23
Canada is to publish data on retail sales and inflation.
The U.S. is to round up the week with reports on durable goods orders and new home sales.