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The US dollar appeared lazy on Friday, slipping against a handful of its main rivals, but mobilized against some emerging markets, including concerns over further sanctions against Turkey.
The ICE index of the US dollar
DXY, -0.52%
which measures the greenback against six developed market competitors, fell by 0.4% to 96.303. The indicator is on track for a 0.1% loss this week, the worst performance in four weeks, according to FactSet.
The dollar weakened particularly against the Canadian dollar
USDCAD, -0.7297%
who gathered on the back of an inflation report. The data showed that Canadian consumer prices increased 3% in the year before July, exceeding consensus estimates of 2.5%. Inflation is one of the key points used by central banks to determine their monetary policy path, and Friday data gave hope for a rise in the Bank of Canada. The last US dollar bought $ 1.3078, down from $ 1.3157 at the end of Thursday.
Japanese Yen
USDJPY, -0.31%
was also stronger, with the dollar slipping to ¥ 110.51, compared to ¥ 110.89 late in New York.
Read: Does Donald Trump really love a strong dollar?
But the broader WSJ Dollar index
BUXX, -0.30%
which includes some emerging markets in addition to the Group of 10 major economies, went slightly better but also decreased by 0.1% to 90.02
EM had done a pause between the news that China and the United States will resume their trade negotiations, which have benefited Thursday's risk sentiment. But all this was forgotten on Friday, while the Turkish lira had to face some renewed weakness.
Laws: 3 reasons why the sale of the Turkish lira is important for markets around the world
La lira
USDTRY, + 3.44543%
was under pressure after three days of respite and concerns for further sanctions. On Thursday, Treasury Secretary Steven Mnuchin said that Turkey could face further US sanctions for detaining Pastor Andrew Brunson, whose status has caused a diplomatic spasm between the two.
Last Thursday, President Donald Trump tweeted that Turkey had taken advantage of the United States too long.
Turkey has taken advantage of the United States for many years. Now they are holding our marvelous Christian Shepherd, which I now have to ask to represent our country as a great patriot hostage. We will not pay anything for the liberation of an innocent, but we are cutting Turkey again!
– Donald J. Trump (@realDonaldTrump) 16 August 2018
The dollar returned above 6 lire on Friday, the last purchase of 6.1505, up 5.6%, while the Euro was around 7 lire
EURTRY, + 4.0244%
up by more than 5.9%.
South African Rand
The USDZAR, -0.3861%
that is threatening the spread of Turkey, but also has a large current account deficit, was another big subtitler on Friday. The dollar bought 14,8206 rand, rising after 14.7384 on Thursday.
Do not miss: The problems of Turkey will not trigger a real crisis among the emerging markets, says the economist
Read also: Opinion: The Turkey has torn apart the book of games with the crisis of emerging markets
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