The dollar is falling from its highest level in a month


On Thursday, the dollar retreated from its highest level in a month, after the Federal Reserve (the US central bank) paved the way for raising interest rates next year and improving sentiment in global markets encouraged dealers to sell dollars.
The Federal Reserve also showed a tendency to tighten monetary policy, paving the way to begin to reduce bond purchases in November, and at a faster pace than analysts’ expectations.
Nine of the 18 US central bank policymakers expected to raise borrowing costs next year, prompting markets to expect the first rate hike to be brought forward to January 2023.
Dollar and bond yields fell with many speculating that the Federal Reserve would have left room to retreat if necessary. China markets were relatively calm, despite expectations that real estate developer Evergrande would not be able to meet an interest coupon on its bonds on Thursday.
During the trading, the dollar index reached 93.277, down a quarter of a percentage point during the day, after rising to 93.526.
The euro rose to 1.1716 dollars, the highest level in a month, and the sterling rose ahead of the Bank of England meeting, which is expected to show a tendency to tighten monetary policy.
The norwegian krone was stable against the dollar, while it rose 0.2% against the euro ahead of the central bank’s meeting, which is expected to raise interest rates.
Earlier in Asia, markets were quiet due to a holiday in Japan and the yuan approached a one-month low against the dollar.
But the Australian dollar rose 0.3% against the dollar to $0.7261.


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