Dollar strengthens against major currencies In response to the minutes of the Federal Reserve’s (Fed) monetary policy meeting, which showed its commitment to raising interest rates to curb inflation.
As of 12:39 a.m. PST, the dollar was 0.62% to 135.85 yen, while the euro was down 0.31% to 137.01 and 0.92% to 1.009. The index measures the dollar’s movements against the six major currencies in a basket of currencies, up 0.89% to 107.52.
The Fed released the minutes of its July 26-27 meeting yesterday, saying that the Federal Reserve’s board was committed to raising interest rates as high as necessary. until inflation can be controlled.
San Francisco Fed President Mary Daly said the Fed would raise interest rates by 0.50%, or 0.75%, at a monetary policy meeting in September. All are appropriate to keep the Fed’s policy rate above 3% by the end of the year. and slightly higher in 2023
Ms Dali added that when the interest rate is at that level and is slowing the growth of the US economy and inflation. The Fed should continue to hold interest rates. and should not cut interest rates rapidly
The dollar was also boosted by the release of strong economic data. by the United States Federal Reserve (Fed) Philadelphia branch The manufacturing index in the Mid-Atlantic region was released. It rose to +6.2 in August, the highest level since April. and was higher than analysts’ forecast of -5.0 from -12.3 in July.
The index is above level 0, which indicates that Manufacturing in the Mid-Atlantic region is expanding.
The Labor Department said initial claims for unemployment benefits fell 2,000 to 250,000 last week. and below the 265,000 analyst forecast.