The dollar is rising after the US central bank kept low interest rates – the economic – the global economy


The dollar rose to its highest level in several months against the euro, the yen and the Swiss franc, after Jerome Powell, Chairman of the Federal Reserve (US Central Bank), did not express any concern about the recent wave of selling of bonds, and adhered to his position to keep interest rates low for a long time.

Powell said in a forum for the Wall Street Journal, on Thursday, that a wave of Treasury bond sales is not disrupting the system, and it is unlikely to push long-term interest rates so high that it prompts the Federal Reserve to intervene more aggressively. His comments reignited the wave of selling in Treasury bonds.

He also reiterated that he is committed to maintaining a very easy monetary policy until the economy goes “a very long way on the road to recovery.”

Neal Jones, head of foreign exchange sales at Mizuho Bank, said: “The dollar rose strongly after Powell’s comments, as I see that many in the market were looking for stronger statements from the US Central Bank to curb further rises in revenues … These statements were not made and the dollar is generally rising. Due to expectations of further increases in US revenues ».

The euro fell 0.4 percent to its lowest level in three months, at $ 1.19255, after falling 0.7 percent overnight.

The dollar reached an eight-month high against the yen, recording 108.45, up 0.5 percent against the Japanese currency.

Japanese Finance Minister Taro Aso declined to comment on the devaluation of the yen when asked about its possible impact on the economy in his country.

The dollar index reached its highest level in three months, and last traded at 91.960 in early London trade, after gaining 0.7 percent on Thursday.

Risky currencies, including the Australian dollar and its New Zealand counterpart, slumped, tracking stocks as investor sentiment turns pessimistic once again.

The Australian dollar fell 0.6 percent to a three-week low of $ 0.7673, extending Thursday’s losses of 0.7 percent. The New Zealand dollar fell 0.6 percent to $ 0.7140.

And in the cryptocurrency market, it fell 3.7 percent to 46,571 dollars. Ether decreased 5.52% to $ 1453.29.



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