The US dollar has weakened from recent multi-month highs as rising global energy prices reshape expectations around interest rates. This is according to a report cited by Reuters, which noted that the shift reflects changing monetary policy outlooks across major economies.
The report highlights that the Federal Reserve is currently the only major central bank not widely expected to raise rates this year, while others are signalling tighter monetary policy in response to inflation concerns driven by energy costs.
The dollar index fell by about 1.1 percent for the week, while other major currencies, including the euro, pound sterling, and Japanese yen, recorded gains as investors adjusted their positions. Rising crude oil prices and geopolitical tensions have also contributed to market volatility.
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Meanwhile, the naira depreciated to around N1,362 to the dollar, according to data from the Central Bank of Nigeria. Market analysts say global shifts in monetary policy and energy prices continue to influence currency movements worldwide.
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