The US dollar is on the verge of breaking a 4-week winning streak

The US dollar fell on Friday, preparing to record its first weekly decline in 5 weeks, as concerns about the deterioration of the US financial situation prompted investors to look for safe havens represented by the yen and the franc.

DXY

The dollar index, which compares the US currency with six other major currencies, is heading for a decline of 1.35% this week, having fallen by more than 0.3% on Friday.

EURUSD

The European euro rose against the US dollar on Friday by 0.4% to reach the levels of 1.1325, and is expected to make a gain of 1.2% during the week after 4 consecutive weeks of losses, as the stop of tariffs has strengthened the dollar in recent weeks.

The European currency is also expected to rise more and more in 2025, as the single currency emerged as a winner in the market turmoil caused by tariffs, and investors fled the dollar, looking for safer bets.

USDJPY

The USD / JPY pair saw declines of 1.5% during the week, after core inflation in Japan accelerated at its fastest annual pace in more than two years in April, increasing the prospects of raising interest rates again by the end of the year.

The data highlights the predicament faced by the Bank of Japan, which is facing price pressures caused by persistent food price inflation, as well as economic challenges caused by Trump's tariffs.

Japanese long-term government bonds also hit record highs this week, although they stabilized on Friday.

USDCHF

The dollar against the Swiss franc recorded declines of 1.2% during the week after two weeks of gains.

AUDUSD

Despite the Australian central bank's interest rate cut last Tuesday, and the cash rate reached its lowest level in two years at 3.85%, due to the deteriorating global outlook and slowing domestic inflation, the Australian dollar is still on the rise this week due to the decline of the US dollar against most major currencies this week.