The US dollar settled at its highest level in two decades, Friday, following global markets swept into a wave of risk-off, with traders expecting the Federal Reserve to raise interest rates by 100 basis points later this month.
Currencies seen as more vulnerable, including the Australian dollar and the British pound, have been pressured by a barrage of negative news in the last 24 hours which weighed on sentiment.
The dollar index, which measures the performance of the US currency once morest a basket of competing currencies, rose to its highest level since September 2002, exceeding 109, in light of the slow start of the US bank earnings season, the slowdown in growth in China in the second quarter, more than expected, and Italy facing a political crisis. New.
The US currency is still on track for a third straight week of gains following traders raised their expectations that the Federal Reserve would go into a major tightening of monetary policy at its meeting on July 26-27, following data on Wednesday showed that US consumer price inflation is rising. at the fastest pace in four decades.
Those expectations were dampened following Federal Reserve Board Chairman Christopher Waller and St. Louis Bank President James Bullard said they favored another 75 basis points increase this month, despite the inflation figures.
The euro settled at $1.0026, following falling from the parity point with the dollar on Thursday for a second day.
The single European currency fell to $0.9952 following Italian Prime Minister Mario Draghi offered to resign, but the country’s president refused to accept it.
The Chinese yuan settled at its lowest level in two months once morest the dollar, and appears on track for its largest weekly decline since May, following the weak data raised doubts regarding achieving the economic growth target for this year.
(Archyde.com)
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U.S. dollar
The dollar maintains its gains after the minutes of the Fed meeting
written by Alexandra Hartman Editor-in-Chief
U.S. dollar
The dollar rose once morest most of the major currencies during today’s trading, and maintained its gains following the release of the Federal Reserve’s meeting minutes.
Government data released today showed that the “ISM” index of service purchasing managers in America fell to the level of 55.3 points in June, the lowest level in two years, while the number of vacancies in the country fell to 11.25 million jobs in May from 11.68 million jobs in April. .
A short while ago, the minutes of the Federal Reserve meeting were released to reveal the scenes of the discussions that took place among the members of the US Central Bank in the June meeting.
The minutes of the meeting revealed that the Fed members see the need to raise the interest rate further to control inflation, stressing that containing inflationary pressures is important to maintain the credibility of the central bank in the markets.
Fed officials also acknowledged that the rapid pace of rate hikes may lead to weaker economic growth.
It should be noted that the Federal Reserve’s meeting in June resulted in a 75 basis point rate hike, the largest increase since 1994.
In terms of trading, the dollar index ( once morest a basket of major currencies) rose at exactly 9:32 pm Mecca Al-Mukarramah time by 0.5% to 107.1 points.
The US dollar fell broadly on Thursday, giving up gains in recent sessions as risk appetite encouraged investors to buy higher-yielding currencies.
Stock markets around the world rose on Thursday following their recent slump, as bets that Saudi Arabia might boost oil production helped cool crude prices, offsetting fears of rising inflation and tightening monetary policy.
“There are some factors that worked once morest the dollar today, but it’s mostly risk sentiment,” said John Doyle, vice president of trading at Monex USA.
Doyle added that news that Saudi Arabia may pump more oil and reports that China will ease some Covid restrictions are helping boost risk sentiment, hurting the safe-haven dollar.
The dollar index, which measures the performance of the US currency once morest six major currencies, fell 0.8 percent to 101.78 points, on its way to halting two days of gains.
The dollar found little support from data showing private sector jobs in the United States increased much less than expected in May, indicating that demand for labor is starting to slow amid rising interest rates and tightening fiscal policy, although job opportunities remain. Too high.
Riskier currencies, including the Australian dollar and the New Zealand dollar, rose once morest the US currency, gaining 1.17 percent and 1.20 percent, respectively.
The Canadian dollar also rose by regarding 0.6 percent once morest the US dollar, a day following the Bank of Canada raised interest rates and opened the door to a faster pace of rate hikes.
The Swiss franc rose 0.5% once morest the dollar following Swiss inflation rose the most in 14 years in May, as Switzerland became the latest country to be affected by rising fuel prices and food costs plaguing economies around the world.
With regard to cryptocurrencies, bitcoin was little changed, which was trading at $ 300,070.99 following falling by six percent on Wednesday, while the world’s largest digital currency by market capitalization is still struggling to overcome a bout of selling pressure that has dominated it for weeks. Last.
(Archyde.com)
(Archyde.com)
The US dollar is headed for its worst week since early February once morest the major currencies on Friday, losing some of the momentum it gained from a sudden 10 percent rise in its value.
The dollar received a boost from investors’ appetite for it, as a safe haven amid turmoil in the markets due to fears of the impact of high inflation and the Russian invasion of Ukraine.
But following rising in the last 14 weeks except for two, the dollar index is heading for a weekly decline of 1.5% on Friday.
The index, which tracks the dollar’s performance once morest six major currencies, was broadly stable on the day at 102.92. The dollar rose to its highest level since January 2003 at 105.01 last Friday.
Other safe-haven currencies rose this week as global stocks came under pressure.
The Swiss franc is heading for a weekly gain of regarding three percent once morest the dollar, while the Japanese yen is heading for a weekly gain of regarding one percent.
The Swiss franc finally settled on a broad scale at 0.97350 franc, while the yen fell 0.2 percent to 128.205 yen.
The euro also benefited from the dollar’s weakness, and is heading for a weekly gain of 1.5 percent. And recorded in its latest transactions, a decrease of 0.1 percent at 1.05755 dollars.
The British pound is preparing to achieve its largest weekly gain since December 2020, and settled at $1.24805 on the day.
In the case of cryptocurrencies, Bitcoin settled at just over $30,000, halting the sharp declines it has seen in recent weeks.