The price of the dollar is USD
The US dollar saw a clear rally during trading on Tuesday amid investors anticipation for Powell’s speech soon as the currency also received support from statements by some hawkish members of the US Federal Reserve, which helped the dollar to recover from its heavy losses it witnessed yesterday.
And yesterday the dollar suffered steep losses, with growing uncertainty in the markets about the need for the US Federal Reserve to raise interest rates above the 5% level to reduce inflation, after the belated effects of the previous decisions by the bank on the economy, which reinforced expectations that the bank was close to halting interest rates.
Statements by officials support the dollar’s recovery
Dollar opened Asian session early trading marginally higher, continued to expand until the green currency was able to recover and erase some of the previous session’s losses, awaiting what the Fed governor will deal with US Reserve Jerome Powell on the bank’s inflation and monetary policy, as well as the support the US dollar received following statements by some members of the US Federal Reserve late yesterday evening.
Comments from insiders that interest rates should hike further and stay high for the remainder of the year supported the dollar’s rally, especially as markets await Thursday’s Powell speech and December inflation data.
Atlanta state Fed member Rafael Bostick confirmed last night that the central bank has even more time to raise interest rates, which San Francisco state bank member Mary Daly also confirmed.
Daly also clarified that the options on the table now are to raise interest rates by 50 or 75 basis points, explaining that the bank’s final decision will depend on economic data, and these statements have led to an increase in investor appetite to raise their holdings in dollars, after investors’ worries about Next Bank’s decision eased and they played down the impact of negative payroll data released on Friday.
Market performance supports dollar profits
US Treasury yields have seen a significant rally in today’s trading as they managed to erase some of the steep losses from previous sessions, and the yield on the benchmark 10-year Treasury rose 2.37% to 3.6%, which helped the dollar hold on to today’s session profits.
Dollar performance now
On the trade front, the dollar index – which measures the performance of the green currency against a basket of 6 other major currencies – rose by 0.24%, reaching 103.42 points.
As for the performance of the dollar against major currencies separately, the euro fell against the dollar by 0.14% to 1.0718 dollars, and the pound sterling also fell against the dollar by 0.51% to 1 $.2122.
At the same time, the dollar rose against the Japanese yen by 0.36% to 132.36 yen, and the US dollar also rose against its Canadian counterpart by 0.19% to C$1.3415. and the dollar rose 0.36% against the Swiss franc, about 0.38%, to 0.9248 francs.
