The dollar is making a strong comeback; reaches maximum after 7 months

The dollar is making a strong comeback;  reaches maximum after 7 months

The dollar neared a six-month high on Monday as traders await an interest rate decision due this week. Federal ReserveBank of England and Bank of Japan.

He Euro added 0.1% to $1.0667, and And in He increased the same amount to 147.69 units per dollar.

He dollar indexwhich compares the US dollar to a basket of six leading currencies, fell slightly to 105.26 units.

The index closed with its ninth weekly gain on Friday thanks to strength of the US economy. It hit 104.53 on Thursday, its highest level since mid-March.

“In general, we have a fairly positive attitude towards the dollar. The US economy is ahead of Europe and Asia, especially China“Said Alvin Tan of RBC Capital Markets.

Traders are awaiting a central bank decision at the end of the week that could shake up the market. currency market. Investors expect the Fed to keep rates between 5.25% and 5.5% on Wednesday.

Moreover, they foresee that Bank of England on Thursday will raise rates by 25 basis points to 5.5%, which could be the last increase.

They also hope that Bank of Japan will keep rates at -0.1% on Friday but will keep an eye on the outlook for monetary policy amid speculation about an imminent exit from ultra-loose policy. The yen has fallen 1.3% in recent days, and losses for 2023 will exceed 11%.

Reuters

Source: Aristegui Noticias

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