The rise of the dollar before the meeting of the US Central Bank and jobs data by Reuters

2023-05-01 20:16:00

© Archyde.com. US dollars of different denominations in a photo from Archyde.com archive.

NEW YORK (Archyde.com) – The dollar rose to a nearly two-week high once morest a basket of currencies on Monday, ahead of an expected 25 basis point interest rate hike by the Federal Reserve and following data showed the U.S. manufacturing sector recovered in April from… its lowest in three years.

Investors will focus on whether the US central bank will signal a temporary halt to rate hikes following May, or if it will decide on another hike in June or following its two-day meeting that ends next Wednesday.

“A lot of people say the Fed will signal that it will pause, but I don’t think it can,” said Mark Chandler, chief market strategist at Bannockburn Global Forex in New York. “The Fed wants to keep some options and flexibility.”

The dollar rose following the Institute for Supply Management said on Monday that its US manufacturing purchasing managers’ index rose to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020.

US jobs data due for release on Friday will be the focus of attention this week. It is expected to show an increase of 180 thousand jobs in April.

It rose in the latest trading today, 0.41 percent, to 102.13, following reaching the highest level since April 19, at 102.19.

It fell 0.43 percent to $1.0970.

The dollar also rose once morest the Japanese currency in the latest transactions by 0.84 percent to 137.46 yen, the highest level since the eighth of March.

The Australian dollar rose 0.20% to $0.6630, up from a seven-week low of $0.6573 on Friday.

(Prepared by Muhammad Ali Farag for the Arabic Bulletin – Edited by Mahmoud Abdel-Gawad)

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