2023-05-24 13:10:00
04:10 PM
Wednesday, May 24, 2023
Cairo- Masrawy:
The US dollar rose to a two-month high against a basket of currencies on Wednesday, as uncertainty over US debt ceiling negotiations sent investors to safe havens, while eyes were also on the British pound, Swedish krona and New Zealand dollar, according to Archyde.com.
The dollar index, which measures the greenback against six major currencies, rose to 103.77, up 0.25% on the day, the highest level since March 20.
The impasse in Washington over debt ceiling negotiations helped lift the dollar, although it could lead to a default and push the country into recession, as investors believe this could cause worse problems for the global economy, according to the agency.
The British Pound was also in the spotlight as it fell to a one-month low against the dollar at $1.23645 and was last just a little bit higher, down 0.23%, after data showed UK inflation slowed by far less than markets had expected.
The British currency lost ground against the EUR as well, which was last at 86.93 Pence.
The rise in inflation, which contributed to raising interest rates in the Bank of England, supported the pound sterling in recent months, but this relationship is now beginning to reverse, according to the agency.
Simon Harvey, head of FX analysis at Monex Europe, said: “We are now in the realm where if the Bank of England is meeting market expectations and taking rates that low, then we are talking about a deterioration in the UK investment outlook.”
Another currency that was under pressure was the Swedish krona, which reached 11,511 kroner per euro, its weakest price against the single currency since March 2009, according to the agency.
1684947283
#price #dollar #rose #highest #level #months #basket #currencies