U.S. dollar
The US dollar recorded a strong rise during trading today, Friday, benefiting from the statements of decision-makers within the US Federal Reserve, which hinted at the bank’s willingness to continue raising interest rates during its upcoming meetings to curb high inflation, and the following are the most prominent influences on the performance of the US dollar:
The statements of monetary policy makers show the strength of the dollar
The dollar clearly benefited from the statements of successive US monetary policy makers today, led by US Federal Reserve Governor Jerome Powell, in which he stressed that the US Federal Reserve will adhere to a strict monetary policy until inflation falls in a clear and sustainable way, and that the US Federal Reserve will prepare cautiously for a new rate hike, especially since growth remains. The US economy above the expected and normal level threatens the monetary tightening plan, which the Fed does not want. Jerome Powell confirmed that the Fed is fully prepared to raise interest rates again if the economic situation requires, noting that the annual core inflation is at 4.3% and the annual core inflation is at 3.3%.
Also, the US Federal Reserve member Loretta Mester confirmed today, Friday, that the US Federal Reserve may still have more work to do, and that the US Federal Reserve should be very diligent about this matter, and also, it was very good to see the recent numbers on inflation, But the Fed needs to see more. These statements had a very positive impact on the dollar’s movements because it reinforced expectations that the Fed will continue to tighten monetary policy at its next meetings.
The rise in US bond yields provides additional support for the dollar index
In addition to Jerome Powell’s positive statements about the Federal Reserve’s willingness to raise interest again, the dollar clearly benefited from the rise in US bond yields of various terms, especially since bond yields are always reflected in the dollar’s movements clearly, as the US 10-year bond yield rose by approximately 0.30% and recorded about 4.246%. Likewise, the 20-year US bond yield stabilized, recording about 4.494%. Meanwhile, the 30-year US bond yield rose by 0.11% to 4.287%, which added to the dollar’s strength.
How was the dollar index affected by these developments?
In light of these developments, the US dollar recorded a clear rise and rose by 0.15%, so that the index settled near the level of 104.13 points, and awaited any new developments that would have an impact on the dollar’s movements in the markets during the coming days.
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2023-08-25 17:20:40
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