Tuesday, 16 July 2024

Dollar up amid investors’ anticipation of Fed decision


The dollar rose today, Wednesday, amid quiet trading, with investors awaiting the monetary policy decision of the Federal Reserve (the US Central Bank) scheduled for next week, while the euro fell from near its highest level in nine months.

According to “Reuters”, the euro fell 0.12 percent against the dollar to $ 1.088, which is slightly less than the $ 1.093 level it reached on Friday, which was the highest level since early May.

The dollar rose 0.1 against the yen, recording 130.28 yen per dollar, after hitting an eight-month low of 127.22 yen per dollar on January 16.

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Low global energy prices and the resulting slowdown in inflation in advanced economies have led to speculation that the Federal Reserve and other central banks will soon stop raising interest rates.

As a result of these expectations, the dollar index, which had risen on the back of the Federal Reserve’s hike in interest rates last year, fell more than 11% from the 20-year high it recorded in September at 114.78.

The index rose 0.11 percent to 102.02 on Wednesday

The pound sterling fell 0.23 percent to $1.231

Investors widely expect the US central bank to raise interest rates by 25 basis points next Wednesday, compared to an increase of 50 basis points in December.

The Australian dollar recorded the highest level in more than five months on Wednesday, supported by inflation data that exceeded expectations, as it boosted expectations of the Australian Central Bank raising interest rates.

The Australian dollar rose, in the latest trading, by 0.81 percent, to $ 0.71

Meanwhile, the New Zealand dollar fell 0.32% to $0.649, after New Zealand’s annual inflation of 7.2% in the fourth quarter came in below the central bank’s forecast of 7.5%.