2023-07-11 10:38:54
The dollar fell to its lowest level in two months today, Tuesday, following officials of the Federal Reserve (the US central bank) indicated that the monetary tightening cycle was coming to an end, while the pound sterling rose to its highest level in 15 months following more-than-expected wage growth in Britain.
Federal Reserve officials said on Monday that the bank will likely need to raise interest rates once more to curb inflation, but added that the monetary tightening cycle is coming to an end.
The comments sent the dollar to its lowest level in two months once morest a basket of currencies at 101.67, as dealers cut their expectations regarding the size of the additional increase in interest rates needed.
Expectations of US interest rate movements have become a major driver of the dollar since the central bank began its monetary tightening cycle last year.
Markets are now focusing on US consumer price data due on Wednesday, which will show the level of progress the US central bank has made in its fight once morest hyperinflation.
The British pound is rising
The British pound rose to its highest level in 15 months at $ 1.2913, following wage growth in Britain hit a new record, which increases pressure on the Bank of England (central) to take further measures to tighten monetary policy in order to control inflation.
The yen was among the biggest gainers, as it rose regarding 0.6%, to drop from the level of 141 yen per dollar for the first time in regarding a month, and reached 140.455 yen in its latest transactions.
The euro rose 0.1% to $1.1012, while the Australian dollar settled at $0.6680, and the New Zealand dollar fell 0.2% to $0.6198.
The Chinese yuan in foreign transactions rose to 7.2055 once morest the dollar in the latest transactions, following sentiment was boosted by the extension of the Chinese central bank’s support for the faltering real estate sector.
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