After talking about interest rates … the dollar reaches a two-week high | Economie


The dollar reached its highest level in two weeks today, Wednesday, extending its gains amid talk of a possible increase in US interest rates and a wave of selling of technology stocks undermined risk appetite, which is in favor of the safe-haven currency.

Yesterday’s recovery in the dollar put pressure on the euro, which fell again below the level of 1.20 dollars today, Wednesday, its lowest level against the US currency in more than two weeks.

The dollar index – which measures its performance against a basket of currencies – rose to 91,436 points, the highest level since April 19.

The recovery came after US Treasury Secretary Janet Yellen’s comments that there might be a need to raise interest rates to prevent the economy from inflationary growth.

Later, Yellen played down the comments, but the simplest sign of tightening monetary policy is severely affecting markets that have become so dependent on monetary stimulus.

The impact was evident on the shares of large-cap technology companies that suffered heavy losses overnight, with the Nasdaq index dropping 1.88%.

Trading was limited in Asia due to a holiday in Japan and China, but the New Zealand dollar rose more than half percent to $ 0.7192 after the country’s jobs data came stronger than expected.

The Australian dollar also rose 0.3% to $ 0.7736. The dollar settled against the Japanese yen at 109.29 yen.

The British pound was trading 0.24% higher at $ 1.3918, a day before the Bank of England meeting, during which some expect to announce the reduction of its bond-buying program.

More economical


Please enter your comment!
Please enter your name here