The decline of the dollar after the testimony of the head of the US Central Bank and the rise of sterling

2023-06-22 07:02:00

dollar

Near its lowest level in a month

Singapore – Archyde.com

Posted on: June 22, 2023: 11:02 AM GST Last updated: June 22, 2023: 12:01 PM GST

The dollar approached today, Thursday, its lowest level in a month against a basket of currencies, after US Federal Reserve Chairman Jerome Powell stuck to his usual messages in his semi-annual testimony, which did not include any surprises.

The pound rose near its highest level in a year ahead of the Bank of England’s interest rate decision later on Thursday. A report on inflation – which continues to be high – released on Wednesday is likely to keep policymakers on their toes.

Powell said in his speech to members of the House of Representatives in Congress yesterday, Wednesday, that continuing to raise US interest rates provides a “very good prediction” of what the Federal Reserve (the US central bank) will do if the economy continues in its current direction.

These statements are in line with what the US central bank said at its monetary policy meeting last week.

And the dollar index settled in the latest transactions at 102.09 points, close to its lowest level in five weeks at 102 points, after falling almost 0.5% in the previous session.

Trading in Asia was on a tight note, with stock exchanges in Hong Kong and China closed for a holiday.

The euro rose to its highest level in more than a month at 1.0995 against the dollar, to continue its rise after rising 0.65% yesterday, Wednesday.

The British pound fell 0.1% to 1.2755 against the dollar.

The Bank of England is set to raise interest rates for the 13th consecutive time later on Thursday, a day after data revealed higher-than-expected inflation. Dealers are divided between raising it by 25 and 50 basis points.

The dollar fell 0.05% to 141.81 against the yen, after touching a seven-month peak of 142.37 against the Japanese currency in the previous session.

And the Chinese yuan stabilized in foreign transactions yesterday, Wednesday, at its lowest level in seven months, and recorded in the latest transactions 7.1823 against the dollar.

The Australian dollar fell 0.51% to 0.6762 against the dollar, and the New Zealand dollar fell 0.2% to 0.6190 against the US currency.