The price of the dollar is USD
The US dollar witnessed a strong rise during the first trading sessions of the week, prompting it to trade at its highest levels in a week; The highest level is 102.5 points, where the green currency received support from several factors today.
The most prominent factors that pushed the dollar to rise strongly today
The dollar continued to benefit from the positive US labor market data, which was issued last Friday, as it showed a decrease in the unemployment rate, contrary to expectations, as well as a decline in the number of jobs added by the economy less than expected as well, which was provided after support for the dollar, as the labor market is still It has enough flexibility so far.
This reinforced investor expectations that the US Federal Reserve may continue to raise interest rates at its next meeting, rather than keeping them unchanged, as the Federal Reserve Interest Expectations Follow-up Tool indicates. FEDWATCH Now to the possibility of raising it by 25 basis points, at a rate of 68.2%, which increased investors’ interest in owning the dollar.
On the other hand, the dollar also received support due to the significant recovery witnessed by the US Treasury yields today, amid investors’ interest in acquiring them to hedge against the geopolitical tensions that have increased today between the United States and China, after the latter carried out simulated military exercises for offensive operations in the airspace and Taiwanese coasts. .
At the same time, European banks continued to be closed today as well and since last Friday amid the spring break, which caused a liquidity shortage in the forex market today, and gave some support to the US dollar, which is awaiting the release of very important inflation data as well as the results of the US Federal Reserve meeting tomorrow, Which would provide more indications about the upcoming move in the next interest rate decision of the Federal Open Market Committee in May.
On the other hand, the US dollar was able to achieve significant gains against the Japanese yen today, as the dollar-yen pair rose to its highest level in a week as well, after the statements of the New Bank of Japan Governor Kazuo Ueda after his meeting with Japanese Prime Minister Fumio Kishida this morning.
Ueda explained that although raising interest by a small amount may not cause a significant impact on the financial system, it is currently appropriate to continue the easing policy of the Bank of Japan, and at the same time indicated that it may also be better to maintain the policy of controlling the yield curve as well. It is, despite its side effects on the economy, which pushed the yen to decline with great force, the dollar was the biggest beneficiary of it.
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In terms of trading, the dollar index – which measures the performance of the US currency against a basket of 6 other major currencies – rose during today’s trading by about 0.60%, to record 102.706 points..
As for its trading against the other major currencies, the euro fell against the dollar by 0.50% to hit $1.0847, and the pound sterling fell against the dollar by about 0.38% to $1.2361..
At the same time, against safe havens, the dollar rose against the Japanese yen by 0.99%, reaching 133.44 yen, and the dollar rose against the Swiss franc by 0.50%; registering 0.9106 francs.
As for its performance against commodity currencies, the Australian dollar fell against its US counterpart by 0.65% to $0.6624, and the New Zealand dollar fell against the US dollar by 0.86% to $0.6198, while the US dollar rose against its Canadian counterpart by about 0.20% to $1.3539. Canadian.