Dollar snaps three-day losing streak as selling pressure abates

Dollar snaps three-day losing streak as selling pressure abates

NEW YORK - The U.S. dollar snapped a three-day losing streak on Friday as the recent selling spree driven by the view that Federal Reserve tightening moves were largely priced in abated, and as weaker risk appetite in financial markets led investors to shun riskier currencies. The U.S. dollar index was 0.3% higher at 95.157, but still looked set to finish the week down about 0.6%, its worst weekly showing since early September. The greenback, which rose more than 6% against a basket of currencies in 2021, came under pressure this week despite Fed Chair Jerome Powell saying that the U.S. economy is ready for the start of tighter monetary policy and data showing the largest annual rise in inflation in nearly four decades. "Investors appear to be taking the view that the USD has peaked and that Fed tightening moves are priced in and the likes of the euro offer better potential returns down the road," Scotiabank foreign exchange strategists said in a note. "We do not concur but have to acknowledge that the USD has suffered a setback — psychologically, at least — by breaking with supportive yield spreads versus its peers and by breaking below the base