Wednesday, 29 May 2024

Dollar dips on expectations that US interest rate will not be ‎raised this month


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US dollar is heading towards its biggest weekly loss since mid-January today, Friday, with investors expecting that the Federal Reserve (the US central bank) will not raise interest this month, which undermines the appetite for the US currency among buyers of other currency holders.

According to “Reuters”, the US Senate’s approval of a bill to suspend the debt ceiling and avoid a catastrophic default removed one of the pillars of support for the dollar, which is a safe-haven currency.

Australian dollar rose after an increase in the minimum wage increased bets that the central bank would raise interest again next week.

The Australian dollar rose 0.68% to $0.662, its strongest performance since May 24.

The dollar index, which measures the performance of the US currency against a basket of six currencies, fell 0.8 percent this week, the biggest weekly loss since mid-January. In the latest trading, it decreased by 0.1 percent

The dollar rose against the yen, after incurring the longest daily losing streak against the Japanese currency since November, after four days of decline. In the latest trading, the dollar rose 0.1 percent to 138.89 yen.

Euro settled at $1.0769 after reaching a one-week high of $1.07685 on Thursday.