By Gina Lee

Investing.com – The dollar was down on Friday morning in Asia, since the start of September. As investors wait to see when the U.S. Federal Reserve starts raising interest rates, it fell back from a record high of one year.

By 12:54 PM ET (04:54 GMT), the that monitors the greenback against other currencies fell 0.02% to 93.938

It was up 0.2% to 113.97.

This pair increased by 0.07%, to 0.7420. The pair also rose by 0.28%, to 0.7055.

While the pair fell 0.04% at 6.4356, it rose 0.10% at 1.3687.

The safe-haven currency was also affected by an improving risk sentiment that boosted commodity prices and global stocks. This currency only held onto the momentum that it gained over the last five weeks in comparison to the Japanese yen.

We end the week by risk flying. The equity markets are rising hard and the Japanese yen doesn’t have a place as a hedge” because it will drag on portfolio performance overall, Pepperstone research head Chris Weston stated in a note.

On expectations that the Fed would start asset tapering earlier then expected, the U.S. dollar had rallied from September 2021 to support the continued economic recovery following COVID-19 and rising energy prices.

Minutes from the central bank’s latest meeting that took place on Wednesday said that that asset tapering is likely to begin in November 2021 but that officials remain sharply divided over inflation. Money market participants are now pricing in approximately 50/50 chances of a 25-basis rate rise by July 2022.

Westpac strategists stated in a note that the dollar index was “looking a little shakey”, but any slippage should be modest, given Fed asset tapering. Note: Any index dips should be kept below 93.70.

U.S. data will also be published later that day. The release of this data follows Thursday’s announcement that shows that the indexes rose 0.5% in September. A lower than expected 293,000 filings were made throughout the week.