The dollar is losing for the fourth month as the Fed’s policy shifted regarding inflation


Yesterday, the dollar headed for a loss for the fourth month in a row after a shift in the US Federal Reserve’s policy on inflation, while the euro is preparing to record a fourth month of gains, which puts the two currencies at levels not seen since 2018.
Investors are adjusting to last Thursday’s speech in which Federal Reserve Chairman Jerome Powell announced the outlines of an adaptive change in policy, which he believes will cause a slight move in inflation towards an increase and keep low interest rates for a longer period.
According to “Reuters”, analysts from “Commerzbank” said, “Even if it appears that US central bank officials are happy to interpret their measurements, it is not good news for the dollar.”
Against a basket of currencies, the dollar rose 0.1 percent to 92,356 in early trade, down 1.2 percent on a monthly basis.
It was the worst performance in August in five years and the longest streak of monthly losses since the summer of 2017.
The euro settled at $ 1.1903 and is on its way to a monthly gain of 1 per cent, which will be its fourth consecutive monthly gain.
The yen fell by 0.4 percent in Asian trading to 105.77 per dollar, after rising to 104.195 last Friday, following the resignation of Shinzo Abe as prime minister for health reasons.
The Chinese yuan reached a 14-month high of 6.844 against the dollar in foreign trade, with investors receiving positive reception for the service sector growth rather than worrying about the faltering recovery in the manufacturing sector.
Later, it erased some of the gains and was at 6.8556 in the last trade.
In addition, gold reversed its course to decline yesterday, as the dollar compensated for some of its losses, despite the new policy framework of the Federal Reserve, “the US Central Bank,” which indicates that interest rates will remain near zero for some time, limiting the losses of the yellow metal, which is a haven Safe.
And gold fell in immediate transactions 0.2 percent to 1961.54 dollars an ounce by 07:24 GMT, after reaching its highest level since August 19 at 1976.14 dollars in early trade in Asia. Gold fell 0.5 percent since the beginning of this month. And US gold futures fell 0.3 percent to $ 1968.80.


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