The dollar rose to its highest level in more than two years Friday, April 22nd, continuing to get support from Federal Reserve Chairman Jerome Powell’s comments Thursday, April 21st, which almost supported a half percentage point interest rate hike during next month’s policy meeting.
The dollar index, which measures the value of the US currency once morest 6 major currencies, reached its highest level since March 2020, when it recorded 101.6, and the dollar index rose in the latest trading by 0.4% to 100.99, and the dollar rose so far this year by 5.75%.
Powell said a half-point rate increase would be “on the table” when the US central bank meets on May 3-4.
In Europe, the euro fell 0.4% to $1.0793 following European Central Bank officials sent mixed signals regarding policy.
European Central Bank President Christine Lagarde said the bank may have to lower its growth forecast, a day following ECB Vice President Luis de Guindos joined a growing number of ECB policymakers in calling for an early end to the asset purchase program as well as a rate hike. Interest in July.
The sterling pound fell 1.4% once morest the dollar to 1.2844 dollars, following falling to its lowest level since October 2020, when it recorded 1.2839 dollars.
The yen settled once morest the dollar at 129.37, but it is still close to its lowest level since April 2002, which it reached on Wednesday, when it recorded 129.43 yen once morest the dollar.
On the other hand, the British pound fell on Friday to its lowest level once morest the dollar since late 2020 following pessimistic data on retail sales and consumer confidence data indicated that economic growth in Britain faces risks.
The British pound fell below $1.29 for the first time since November 2020 to reach its lowest level at $1.2858. It fell 1.2 percent in its latest trading on Friday, and is heading for its largest one-day decline in two months.
The pound also fell once morest the euro to its lowest level since April 4, and last time fell by more than one percent to 84.03 pence per euro, in its worst day once morest the euro. Seven months ago.
British retail sales fell 1.4 percent in March from February, much more than expectations for a 0.3 percent decline in a Archyde.com poll.
British consumer sentiment fell to its second lowest level ever since records began nearly 50 years ago, with the deepening cost of living crisis denting household confidence in the economy.