2024-02-22 12:33:00
© Reuters Why did the US dollar index clearly fall during trading?
Arabictrader.com – The US dollar was exposed to downward pressure during global market trading today, Thursday, and recorded a clear decline in trading, ignoring the results of the Federal Reserve’s monetary policy committee meeting related to the previous interest decision, but the decline in US bond yields led to a decline in the US dollar in trading, in conjunction with anticipation Markets await the release of important economic data in the United States, scheduled to be released later today, which may have an impact on the upcoming movements of the US dollar.
Why did the US dollar index clearly fall during trading?
In this context, the US dollar index witnessed a clear decline in market transactions today, Thursday, despite the fact that the Federal Reserve’s monetary policy committee meeting showed policymakers’ concern regarding the issue too early, but the decline in yields negatively affected US dollar trading, as bond yields recorded… The American 10-year bond yield decreased by 0.41% and settled at 4.306 points, in addition to a decrease in 20-year bond yields by regarding 0.37% to record regarding 4.583 points. Also, 30-year bond yields fell by 0.56% and reached the level of 4.467 points, and this caused the index to decline. US dollar in trading.
In addition, the US dollar recorded a noticeable decline in market transactions today, Thursday, with the markets looking forward to the release of the purchasing managers’ index (PMI) data for the manufacturing and services sector (PMI) in the United States for the month of February, which is scheduled to be released later in today’s market transactions, which may have an impact on the Federal Reserve’s decisions. The upcoming US dollar, with regard to interest rates, whether by reducing prices or keeping them as they are without change, which in turn will affect the upcoming movements of the US dollar.
In addition, the US dollar fell during today’s trading, coinciding with the pessimistic expectations of the international rating agency Standard & Poor’s regarding US interest rates, which expected that it would reduce rates twice more by the end of 2024. Also, the agency expected US inflation to decline further in the coming months. In the upcoming period, this in turn has increased speculation regarding the possibility that the Federal Reserve will begin reducing interest rates very early, which will negatively affect the performance of the dollar in the future.
How was the US dollar affected by these developments?
In terms of global market trading today, Thursday, the US dollar index (which measures the performance of the US currency once morest a basket of six other foreign currencies) recorded a decline of 0.25% and reached the level of 103.731 points.
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