The US Dollar strengthened against several major currencies amid growing expectations of Federal Reserve interest rate hikes. According to FX Street, the USD/INR pair rose to near 95.80 in the opening session on Friday, while the USD/CHF traded around 0.8140 during Asian hours, marking a third consecutive day of gains.
European currencies and cryptocurrencies also faced pressure, with the EUR/USD pair remaining under selling pressure for the second straight day on Thursday, holding just above its weekly low, FX Street reported. Bitcoin traded below $77,000, according to CoinDesk, as the broader crypto market felt the impact of the stronger dollar and risk-off sentiment.
Asian stocks declined sharply on Friday, driven by surging energy prices and a global bond selloff, FX Street noted. The strength of the dollar and rising US yields are key factors influencing markets worldwide, including Japan, where exporters closely monitor currency moves that affect corporate earnings.