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The dollar is up, but this is going to be its worst week since February 2022 as headwinds continue.

 On Friday morning in Asia, the dollar was up, but it was going to have its worst week since early February 2022 because U.S. Treasury yields were going down and people were tired of the greenback’s 10 percent, 14-week rise.

The US Dollar Index, which measures the value of the dollar against a basket of other currencies, was up 0.35 percent at 102.94 (3:45 AM GMT) at 11:45 p.m. ET. The index was down 1.5% for the week and is about to end a six-week winning streak. A week earlier, it reached 105.01, which was the highest level since January 2003.

The USD/JPY pair moved up by 0.03% to 127.84.

The AUD/USD pair dropped 0.45% to 0.7015, and the NZD/USD pair dropped 0.1% to 0.6371.

The GBP/USD currency pair fell 0.10 percent to 1.2447, while the USD/CNY pair rose 0.22 percent to 0.67282.

But global stocks keep going down because the U.S. Federal Reserve’s aggressive monetary tightening and China’s COVID-19 continue to hurt economic growth. As investors bought Treasury bonds, the fall in U.S. yields also made the dollar less attractive as a safe haven.

Earlier this month, the 10-year Treasury yield reached a three-and-a-half-year high of more than 3.2 percent.It fell to a more than three-week low of 2.772 percent overnight.

In a note, Edward Moya, a senior analyst at OANDA, said in a note that the dollar was ready for a drop. “Weakness across the board could last for a while longer.”

The dollar fell 1.16 percent from the previous Friday to 127.795 yen, which helped the Japanese yen rise for the second week in a row.

Now, there are more worries that the Fed and other central banks haven’t done enough to stop inflation and will need to tighten policy even more. The ongoing war in Ukraine, which began when Russia invaded on Feb. 24, is also making it harder to predict how much commodity prices will rise.

In the Asia-Pacific region, China still doesn’t know how to get out of its COVID-19 lockdowns, even though the city of Shanghai is getting ready to let more businesses in zero-COVID areas start operating normally again at the start of June 2022.

Some of the Antipodean currencies got a boost from signs that China might open again. After the Australian dollar went up by 1.33 percent on Thursday, the U.S. dollar went up a little bit on Friday.

“China’s strict lockdowns are the main reason why the Australian dollar is so far from where its fundamentals would suggest it should be,” an analyst at the Commonwealth Bank of Australia wrote in a note.

“We are still confident that the Australians will bounce back strongly once lockdowns are lifted because China has promised to spend more on infrastructure.”

Next Wednesday, the Reserve Bank of New Zealand will also say what its policy will be.

Analysts at Westpac told people not to give up on the dollar, even though its rally was “losing some of its strength.”

In a research note, they said, “It’s still way too early to call a long-term peak, given the uncertain global market and the firm Fed.” They suggested buying on dips in the 102s and aiming for 105 over the next few weeks.

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