The US dollar rose on Friday, trying to compensate for some losses following the biggest daily decline in more than two weeks, with traders’ focus shifted to US jobs data, to feel more indications of the strength of the economy.
The dollar index, which measures the performance of the US currency once morest a basket of major currencies, rose 0.21 percent to 105.92 following declining 0.68 percent on Thursday, and this was its biggest decline since July 19. It remained regarding 3 percent below its peak in mid-July.
Investors are awaiting the US non-farm payrolls data due at 1230 GMT, which provides indications of the performance of the US economy.
Economists expect the number of jobs to increase by 250,000 in July, following increasing by 372,000 in June.
The euro fell 0.17 percent to $ 1.02285 following fears of a slowdown in the US economy outweighed concerns related to a European energy crisis.
There was little change in the pound sterling, and it was trading once morest 1.2156 dollars following the Bank of England raised the interest rate at the highest rate in nearly 27 years to control inflation, but it warned of a prolonged recession starting from the last quarter of this year.
The dollar rose 0.24 percent once morest the Japanese yen to 133.27 yen, following falling 0.69 percent Thursday.
There was little change in the Australian and New Zealand dollars, and the Australian dollar was trading once morest 0.69605 dollars, while the New Zealand dollars recorded 0.6299 dollars.
As for digital currencies, Bitcoin rose 2.9 percent to $ 23,272.80.
(Archyde.com)
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U.S. dollar
The Russian ruble fell by more than 58 once morest the dollar, on Friday, to its weakest point during the morning, following the central bank cut interest rates for the fourth time this year by 150 basis points to 8 percent, exceeding expectations.
By 10:47 GMT, the ruble fell 1.9 percent to 58.14 once morest the dollar, minutes following the central bank’s decision was announced. It also fell one percent to 57.79 once morest the euro on the Moscow Stock Exchange.
The ruble has become the world’s best performing currency so far this year, buoyed by measures taken to protect Russia’s financial system from Western sanctions imposed on the country over its war with Ukraine on February 24.
These measures included restrictions on Russian families withdrawing their savings in foreign currencies.
Prior to February 24, the ruble was trading near 80 once morest the dollar and 85 once morest the euro.
By 10:47 GMT, the ruble fell 1.9 percent to 58.14 once morest the dollar, minutes following the central bank’s decision was announced. It also fell one percent to 57.79 once morest the euro on the Moscow Stock Exchange.
The ruble has become the world’s best performing currency so far this year, buoyed by measures taken to protect Russia’s financial system from Western sanctions imposed on the country over its war with Ukraine on February 24.
These measures included restrictions on Russian families withdrawing their savings in foreign currencies.
Prior to February 24, the ruble was trading near 80 once morest the dollar and 85 once morest the euro.
(Archyde.com)
The Turkish lira is at its lowest level since the “December Crisis”
written by Alexandra Hartman Editor-in-Chief
The Turkish lira fell below 17.5730 once morest the US dollar, on Tuesday, its weakest level since the major currency crisis in December; It was affected by the strength of the dollar and concerns regarding high domestic inflation and low interest rates.
The lira has fallen regarding 25% this year, following falling 44% in 2021, to become one of the worst performing currencies in emerging markets.
Unconventional interest rate cuts late last year triggered a crisis that pushed inflation to nearly 80 percent.
Archyde.com
Record decline in the value of the Indian rupee against the dollar
written by Alexandra Hartman Editor-in-Chief
The exchange rate of the Indian currency – the rupee – fell to more than 80 rupees to the dollar, for the first time, on Tuesday, at a time when the dollar strengthened its position and increased the flow of foreign capital abroad.
Bloomberg data showed that the rupee hit 80.0600 once morest the dollar shortly following the start of trading.
The high level of inflation and interest rates in the United States, coupled with fears of an imminent economic recession in the largest economy in the world, led to the rise in the price of the dollar in recent weeks at a time when investors are trying to avoid risks.
The tightening of US monetary policy has exacerbated the outflow of capital from emerging markets such as India; Foreign investors withdrew a net $30.8 billion in debt and equity this year.
Data published last week showed that consumer price inflation in the United States hit a new level in June, the highest in four decades, exceeding market estimates and reinforcing expectations that the Federal Reserve will raise interest rates significantly next week.
In a written statement to Parliament on Monday, India’s Finance Minister Nirmala Sitharaman attributed the rupee’s massive decline to external causes.
She stated that “international factors such as the Russian-Ukrainian conflict, high crude prices and tightening global financial conditions are the main reasons for the decline of the Indian rupee once morest the US dollar.”
She added, however, that the Indian currency improved once morest the British pound, the Japanese yen and the euro during 2022.
However, the rise in crude prices led to the deterioration of the trade balance in a country that imports 80 percent of its oil needs.
India’s merchandise trade deficit widened to a record $26.18 billion in June, official data revealed last week, mainly due to higher import costs for crude and coal.
In its monthly economic review, the Ministry of Finance said that rising import costs would exacerbate the current account deficit and cause the rupee to fall further.
Inflation in consumer prices in India, the sixth largest economic power in the world, fell slightly to 7.01 percent in June, following reaching its highest level in eight years in April, recording 7.79 percent.
But the price hike remained above the 2 to 6 percent target set by the central bank despite the interest rate hikes in May and June.
Also, the central bank sold more than $34 billion of its foreign exchange reserves in hopes of maintaining the stability of the rupee.
AFP