Kevin Buckland

TOKYO (Reuters – The U.S. currency held at a near two-decade-high Wednesday, after U.S. inflation eased more than the markets expected. That keeps the Federal Reserve on track to increase its policy tightening aggressively.

Although the was able to measure the greenback’s value against six of its major peer currencies, it fell 0.1% on Thursday to 103.92, however, the level at which the week began is still very close to that level in 2002.

In April, the consumer price index increased 8.3% annually. This is a decrease from 8.5% in March. However it was higher than economists’ 8.1% estimates.

Data suggested that inflation had reached its peak, however it was not likely to slow down or derail current Fed monetary policy.

According to CME FedWatch, the market has priced in at least a half-point increase in the Fed policy rate for each of the Fed’s next two decisions on June 15th and July 27th.

“The stronger-than-expected U.S. inflation print heightened concerns over the need for the Fed to accelerate its policy tightening path,” Rodrigo Catril, senior currency strategist at National Australia Bank (OTC:), wrote in a client note.

The data on May CPI comes five days ahead of the Fed meeting in June. Another “shocker”, he stated, would make a 75 basis point hike there a “strong possibility”.

1.0526 was a 0.4% increase in the euro, edging out a little from its five-year low of $1.04695 at the close last month. As the European Central Bank raised expectations overnight that its policy rate will rise in July, the single currency saw a boost.

A lowering in long-term Treasury yields after a peak of 3.2% over the past multi-years continued to provide support for the yen.

Japan’s currency gained 0.1% to 129.835 USD, further away than the nearly two-decade-low of 131.35 on Monday. The Japanese currency also fell to a near two-week low in Tokyo trading of 2.862%.

While Brexit headlines returned to Britain, the British Pound languished, and the attorney general for England & Wales informed the government that the government would have legal rights to repeal large sections of the Northern Ireland protocol. The Times reported that the Times was the only newspaper to report this.

For the first time in nearly two years, Sterling fell to $1.2230 Thursday.

After falling below $30,000 on Wednesday, cryptocurrency bitcoin tried to retake that amount. This was the first time in seven months. On Friday it reached $30,090.70 before closing at $29,185. The previous session saw it drop to $27,757.77.