Noha Makram – Live – The dollar stabilized against its major counterparts on Tuesday, after halting its rise after Federal Reserve officials turned a somewhat dovish tone.
Movements during the Asian session were weak, with traders awaiting more statements from Federal Reserve officials later in the day, as well as the minutes of the Fed’s meeting, scheduled to be released tomorrow, Wednesday, in addition to US inflation data, the day after tomorrow, Thursday, in search of more guidance regarding the direction of interest rates. .
The Australian dollar and the New Zealand dollar recorded their highest levels in a week before falling, settling at 0.6411 and 0.6015 against the US dollar, respectively.
In the latest transactions, the British pound recorded $1.2224, while the euro reached $1.0561, making them trade broadly stable.
The yen fell slightly, paring some of its gains after the conflict in the Middle East supported the purchase of safe assets, as it fell in recent trading by 0.1% to 147.7 against the dollar.
The Swiss franc also stabilized against the dollar at 0.9066.
The strong US jobs data last week, and the mutual bombardment between the Palestinian popular resistance movements and the Israeli occupation army that broke out last weekend, pushed the dollar to rise until statements by Federal Reserve officials came yesterday, Monday, that the rise in long-term bond yields may negate the need for more. From raising interest.
Dallas Fed President Lori Logan said that if interest rates remain high for a long period due to higher risk premia, there will be less need to raise rates. This is a noticeable shift from his previously strict tone.
While Philip Jefferson, Vice Chairman of the Federal Reserve, said that the central bank may need to proceed cautiously given the recent rise in yields.
Against this background, Westpac analysts said that the dollar index may continue its declining trend to 105.50, although its rise towards the 109 level during the next few months is still possible.
The dollar index rose slightly in recent trading, by 0.1% to 106.1.
2023-10-10 08:51:37
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