Currency market: The dollar index has returned to growth
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The dollar broke away from an 8-month low on Monday ahead of the meeting of central banks this week, although its growth was limited by a “dove” revaluation of the expected rate hike by the US Federal Reserve compared to more “hawkish” banks, writes Reuters.
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Currency market
The US dollar index rose 0.03% to 101.92 after hitting an 8-month low of 101.50 last week.
At the same time, the dollar is moving towards the fourth consecutive monthly loss of more than 1.5% under the pressure of expectations that the Fed is ready to suspend the cycle of rate hikes, and that the rate will not continue to grow as high as previously feared.
Sterling rose 0.04% to $1.2405, while the euro rose 0.06% to $1.0874.
But their growth was restrained before the political meetings of the Fed and the European Central Bank and the Bank of England at the end of this week.
According to Rodrigo Katril, the currency strategist of the National Australia Bank, the market is still trying to assess how central banks will behave.
Read also: Currency market: The dollar is stable against the euro and depreciates against the yen
The Fed is expected to raise rates by 25 basis points, which is lower than last year’s increases of 50 basis points and 75 basis points, and the Bank of England and the ECB are likely to raise rates by 50 basis points each.
The euro, which is close to a monthly increase of almost 1.5%, received support from the continued “hawkish” rhetoric of the ECB and weakening fears about a deep recession in the eurozone.
The New Zealand dollar fell 0.05% to $0.6491, while the yen jumped almost 0.2% to $129.62 per $1.
Source: Ministry of Finance
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