Dollar is rising as Powell sticks to keeping rates low

The dollar rose to its highest level in several months against the euro, the yen and the Swiss franc, today, Friday, after Jerome Powell, Chairman of the Federal Reserve (US Central Bank), did not express any concern about the wave of bond selling in recent times, 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 disturbing the system and is not likely to push long-term interest rates to levels so high that the Federal Reserve is pushing to intervene more aggressively, and his comments reignited the wave of selling in Treasury bonds, stressing his commitment to maintaining a very easy monetary policy until the economy goes "a very long way on the road to recovery."

 

Neil Jones, head of foreign exchange sales at Mizuho Bank, said, "The dollar rose strongly after Powell's remarks as I see that many in the market were looking for stronger statements from the US central bank to curb further increases in revenues ... These comments were not made and the dollar is generally rising due to expectations of rises." Other in US revenue. "

 

The euro fell 0.4 percent to its lowest level in three months, recording $ 1.19255, after falling 0.7 percent overnight, and 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 yen's decline when asked about its potential impact on the economy in his country, and the dollar index reached its highest level in three months, and settled in the latest trading at 91.960 in early trade in London after it gained 0.7 percent on Thursday.

 

Riskier 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.