The dollar falls to its lowest level in a month against major counterpart currencies

Amman Today

publish date 2021-09-04 09:08:19

Jordan word

The dollar plunged to its lowest level in almost a month against major counterpart currencies yesterday.
According to “Reuters”, there was little change in the dollar index, which tracks the performance of the US currency against a basket of six corresponding currencies, at 92.207, after it touched 92.151 earlier for the first time since August 5.
The euro also nearly settled at $1.1878, after hitting its highest level since August 4 at $1.1884, supported by rising inflation in the region to a 10-year high and a hawkish monetary speech from European Central Bank officials ahead of a policy meeting in The ninth of September.

Meanwhile, the US central bank has made labor market recovery a condition for reducing asset purchases during the pandemic.
The dollar rose for most of the past month thanks to the expectation that a downsizing may be imminent, even as Covid-19 cases rise in the United States, which ironically gives the currency an additional boost due to its role as a safe haven. Half a month at 93,734 on August 20, Fed officials began indicating that the spread of the virus could delay policy tightening.
US Central Bank President Jerome Powell said at the Jackson Hole symposium held by the Federal Reserve a week ago that reducing stimulus is still possible this year, but there is no hurry to raise interest rates later, which pushed the dollar to decline further.
The Australian dollar rose 0.18 percent to $0.7416, after earlier touching a one-month high of $0.7417.
The New Zealand dollar gained 0.22 percent to $0.7127, after rising to its highest level since June 16 at $0.7129.
The US currency added 0.07 percent to 110.01 yen, consolidating near the center of its trading range since early July and without showing a reaction to Japanese Prime Minister Yoshihide Suga’s decision to step down at the end of the month.
In addition, gold prices rose yesterday, supported by the weakness of the dollar, while investors awaited US jobs data to learn about the Federal Reserve’s plans to start reducing asset purchases. percent per week.
US gold futures also rose 0.2 percent to $ 1814.80.
The US currency fell for the second week in a row.
Stephen Innes, managing partner at S. with me. IE Asset Management “We are seeing little pre-positioning of people who might want to buy to take advantage of the non-farm payrolls report.”
He added that the weak number “would be very positive for gold, as it reinforces the more cautious expectations of Jerome Powell, Chairman of the Federal Reserve for the US economy.”
While gold is a hedge against inflation and currency instability caused by unprecedented stimulus measures, lower interest rates also reduce the opportunity cost of holding the non-yielding yellow metal.
For other precious metals, silver rose 0.3 percent to $23.96 an ounce. Platinum rose 0.3 percent to $1001.66, while palladium rose 0.6 percent to $2415.49.

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Source : ألدستور

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