Monday 23 April 2018

US dollar with weekly growth against all major currencies

Over the past week, we have witnessed something that is happening relatively rarely - the dollar has appreciated against all major currencies.
A major part of the appreciation of green money relative to other currencies was predetermined by the rise in interest rates on US bonds, to which the dollar is extremely dependent.
Investors have renewed expectations for further interest rates to be raised by the Fed during the year. The rising demand for more risky assets, on the other hand, has led to further strength for the US currency.
For the last week, the dollar index ended at 90.075 points, or an increase of 0.64%.
Late last week, Fed officials hinted at a further gradual rise in interest rates based on strong economic growth figures.
Fed San Francisco head John Williams said that inflation will rise this year to Fed targets of 2% and will remain above those targets a few years.
In order to protect the US economy from overheating, it is necessary for the Fed to continue raising interest rates, Williams said.
On the other hand, the leader of the Chicago Fed, Charles Evans, said it might be more appropriate to raise interest rates gradually.


No comments:

Post a Comment