© Reuters. The dollar erases its early losses and climbs to its highest level in more than a week, so why?
Arabictrader.com – The US dollar rose during Thursday’s trading, for the second session in a row, as the green currency managed to erase its early losses, and rose to trade at its highest level in 8 days.
dollar now
In terms of trading, it rose – which measures the performance of the US currency against a basket of 6 other major currencies – by 0.22% to reach 100.508 points.
The most important factors that affected the movements of the dollar
Data released today in the United States showed that the number of weekly jobless claims declined during the week ending July 15th by more than market expectations, to its lowest level since the first week of last April, more than two months ago.
This pushed the US dollar to a strong rise, erasing its marginal gains incurred during early Asian trading, to reach its highest level since July 13, as jobless claims data indicated strong demand for workers.
At the same time, the dollar rose, supported by the strong rise in US returns, as the benchmark 10-year bond yield rose by 2.06% to record 3.84%, after its decline that continued over the previous two sessions.
The dollar continued its gains on account for the fifth consecutive session, on the back of lower-than-expected inflation data, which led to lower bets on raising interest rates at the Bank of England.
The dollar was also able to achieve some gains at the expense of the Japanese yen, after the Japanese government announced lowering its growth forecasts for the country this year, one day after Bank of Japan Governor Kazuo Ueda said that the bank would patiently continue to maintain its accommodative monetary policy to support growth.
While the dollar incurred some losses against it after the release of very positive labor market data in Australia this morning.
dollar in currency pairs
In terms of trading, the American dollar declined by 0.14% to 1.18 dollars, and the British pound fell by 0.50% to 1.287 dollars.
As for its trading against safe-haven currencies, the dollar rose against 0.23% to 139.94 yen, and the Swiss rose by 0.42% to 0.863 francs.
At the same time, the Australian dollar rose against its US counterpart by about 0.68% to $0.6816, while the New Zealand dollar fell by about 0.67% against the US dollar to $0.6816, and the Canadian dollar fell against its US counterpart by about 0.11%, recording $1.3149.
2023-07-20 15:27:00
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