The US dollar continued its gains for the tenth week in a row, recording the longest wave of weekly gains since 2014, supported by the tight monetary policy adopted by the US Federal Reserve, compared to the policies pursued by the central banks in the Eurozone, Britain, and Japan.
During today’s trading, the dollar index rose against a basket of currencies by about 0.10 percent to about 105.47, a level not far from its highest level in six months that it recorded in the previous session at 105.74.
On the other hand, the British pound fell 0.28 percent to $1.2263, after falling to its lowest level in almost six months at $1.22305, yesterday, Thursday, after the Bank of England stopped increasing interest rates after raising them 14 times.
The Japanese yen fell on Friday after the Bank of Japan maintained its ultra-accommodative monetary policy
The yen fell to its lowest level in ten months in the previous session against the backdrop of rising US Treasury bond yields.
At the end of its meeting on Wednesday, the US Federal Reserve kept interest rates unchanged at a level ranging between 5.25 percent and 5.50 percent, but indicated an additional increase this year, and also toughened its tone regarding the continuation of interest rates at high rates for a longer period.
Dominique Al-Khoury, Global Director of Sales and Business Development in the Gulf and the Middle East at Squared Financial, said in an interview with Sky News Arabia that the US dollar derives its strength from the significant rise in interest rates, expecting it to continue at its strong levels, especially after the US Federal Reserve indicated an additional increase in interest rates. Interest rates this year.
“At the last Fed meeting, we saw 12 out of 19 members of the Open Market Committee likely to raise interest rates at least once this year… and therefore automatically the dollar will remain strong and dominant against the rest of the currencies, especially since the American economy is still going very well,” he said. What the priest said.
Regarding the Bank of England’s decision to stabilize the interest rate, Al-Khoury said that it came after optimism about the sudden decline in inflation that Britain witnessed last August, indicating that the English Central Bank may have wanted to wait a little before intervening again by increasing the interest rate.
“There is no certainty about the next steps of the English Central Bank, but I believe that the latest stabilization will not be the end… and that it will wait a little and then intervene again,” according to what Al-Khoury said, who pointed to the significant decline of the pound sterling against the dollar.
2023-09-22 14:00:54
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