The dollar rises after its recent losses, as interest rate decisions are awaited by Reuters

2023-04-24 09:37:00

© Archyde.com. One hundred dollar bills in a photo from the Archyde.com archive.

LONDON/SINGAPORE (Archyde.com) – It rose on Monday to stabilize its price following the recent losses it suffered a week ago when investors await the Bank of Japan meeting and the issuance of the latest data before the decisions of the Federal Reserve (the US Central Bank) and the European Central Bank regarding interest rates in early May. .

Trading was fairly stable, with the pound dropping 0.2 percent to 1.2420 once morest the dollar and declining 0.1 percent to 1.09775 once morest the dollar. Neither currency might maintain multi-month highs in mid-April above 1.25 once morest the dollar and 1.10 once morest the dollar.

The dollar rose 0.1 percent to 134.2, compared with the US currency index rising 0.12 percent to 101.8 points.

The dollar index, which measures the performance of the US currency once morest a basket of other major currencies, hit its lowest level in a year at 100.78 points on April 14 as markets expected the Federal Reserve to cut interest rates later this year while betting on raising interest rates. In Europe a few more times.

Both the US Central Bank and the European Central Bank will meet in early May, but before that, markets will receive data on GDP and personal consumption expenditures in the first quarter in the United States, looking for any signs of a weak economy and high inflation, which would reveal the path of Federal Reserve policy. .

Policymakers are widely expected to raise interest rates by another 25 basis points at the Federal Open Market Committee meeting next week, although the focus will be on guidance on future moves.

Data released on Friday showed the pace of business activity in the United States and the euro zone picked up in April, easing fears of an imminent recession in major economies.

Markets are also expecting the European Central Bank to raise interest rates by a quarter point with the possibility of a 50 basis point hike. Inflation and growth data for the Eurozone are also scheduled for release this week.

The Bank of Japan will hold its monetary policy meeting on Friday, the first such meeting chaired by new governor Kazuo Ueda.

At the meeting, Ueda is widely expected to maintain the BoJ’s current policy of monetary easing, following he reassured the markets at the beginning of this month that any change in policy would not happen quickly.

(Prepared by Noha Zakaria for the Arabic Bulletin – Edited by Yasmine Hussein)

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