2023-05-22 18:13:54
The dollar rose as attention shifted towards the US central bank’s policy and the debt ceiling talks
The dollar rose once morest the yen today, Monday, but remained below its highest level in six months, as investors await any indication of whether the Federal Reserve (the US central bank) will continue to raise interest rates, as well as follow the position of Congress on reaching an agreement to raise interest rates. US debt ceiling.
The dollar regained its strength during the past two weeks following stronger-than-expected economic reports and statements by US central officials regarding tightening monetary policy, which indicates the possibility of continuing to raise interest rates.
“The dollar has risen over the past two weeks, supported by the increase in US interest rates,” said Mark Chandler, senior market analyst at Bannockburn Global Forex in New York.
However, comments from Federal Reserve Chairman Jerome Powell, made on Friday, sent the dollar back from its highs following he said that tightening credit conditions may limit interest rate hikes.
The dollar got a small boost on Monday following St. Louis Federal Reserve Chairman James Bullard said the bank may still need to raise interest rates another half percentage point this year.
The dollar rose once morest the Japanese currency in the latest trading 0.36% to 138.43 yen, which is slightly below its highest level in six months at 138.75 yen reached on Thursday.
The euro rose 0.04% to $1.0810, following hitting a more than seven-week low of $1.0760 on Friday.
The dollar index, which measures the performance of the US currency once morest six major currencies, rose 0.19% at 103.22 points, hovering below its highest level recorded last week at 103.63 points.
Investors are now awaiting an important meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy, today, Monday, to discuss raising the debt ceiling.
The British pound fell 0.14% to $1.2428, following hitting a three-week low of $1.2392 on Thursday.
The Australian dollar fell 0.12% to $0.6644.
The Chinese yuan fell to 7.0473 per dollar in offshore trading and is heading towards its lowest level in six months, which it recorded on Friday at 7.0750 dollars.
(Archyde.com, The New Arab)
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