The global dollar rose on Thursday against high-risk currencies, as the yen, which is a safe haven, recorded the highest level in a month, with investors worried about the Federal Reserve’s gloomy outlook for the economy.
Reuters said that these moves led to the dollar compensating its initial losses, after announcing the position of the US central bank on monetary policy, as it expected interest rates near zero for years, which was welcomed as an indication of its continued support for asset prices.
The Australian dollar retreated from the highest level in 11 months, and fell one percent to $ 0.6923, as investors sold the currency to take profits, after the Australian dollar witnessed a surge that pushed it up by 3.8% at the beginning of this month.
The New Zealand dollar abandoned its highest level in four and a half months, and fell 0.7% to $ 0.6488.
The Japanese yen rose slightly to 106.90, the highest level recorded since mid-May.
Policy makers at the US central bank expect the US economy to contract 6.5% this year and an unemployment rate of 9.3% at the end of the year.
“The way is long,” US Jerome Powell, the head of the US Central Bank, said, “We don’t even think about discussing raising interest rates.”
The pound fell 0.6% to $ 1.2666, as the South Korean won exposed to exports witnessed losses of 0.5%, and the Norwegian krone also fell by 1% affected by the oil market.
In exchange for a basket of currencies, the dollar got rid of losses it incurred last Tuesday, recording 96,437.
After the euro hit its highest level in 3 months at night, as it resisted pressure between major currencies and retreated by only 0.4%, leaving the possibility open to further decline.
The European single currency was last traded at $ 1.1333.
–
