publish date 2022-01-27 16:39:36
The dollar climbed to its highest level in 2022 as Federal Reserve Chairman Jerome Powell indicated that the central bank would embark on a cycle of raising interest rates starting in March.
The Bloomberg Spot Dollar Index continued its gains on Thursday, adding to the 0.5% advance spurred by Powell’s comments, while commodity currencies led the losses.
In this regard, strategic analysts at TD Securities, including Jim O’Sullivan, said in a note: “Powell has been candid about the potential need to tighten aggressively, and this supports our bias for more US dollar resilience early on in this public, especially against financiers.
With the Fed meeting approaching, traders were turning away from the dollar, as speculators dumped it against the euro, pound, yen and Australian dollar. Long-term net speculative trades against its major peers have also fallen by the most since June 2020, according to the latest data from the Commodity Futures Trading Commission.
In addition, the yen fell 0.7% on Wednesday to close at 115 against the dollar. Commodity currencies including the Australian and New Zealand dollars are also down more than 2% this year.
In addition, gold prices fell, today, Thursday, with the dollar rising to its highest level in weeks, after the US Federal Reserve indicated the possibility of raising interest rates in the near future.
Gold futures fell by 1.09% to $1812 an ounce, while the spot gold futures contract fell 0.53% to $1809.89 an ounce.
At the end of its meeting yesterday evening, the US Federal Reserve decided to keep the interest rate unchanged from 0.25%, and also indicated the possibility of raising the interest rate in the near future. The US Federal Reserve also revealed its plans to end bond purchases in March.
Locally, the selling price of a gram of 21 karat gold most desired by citizens in the local market today, Thursday, reached 37 dinars for the purposes of buying from goldsmiths, compared to 35.50 dinars for the seller.
The selling price of 24 and 18 carat gold for the purpose of buying from goldsmiths’ shops was 43.30 dinars and 33 dinars, respectively, according to the head of the General Syndicate of Owners of Trade, Jewelery and Jewelery Shops in Jordan, Rebhi Allan.
Allan said that the price of the Rashadian lira, weighing 7 grams, amounted to 260 dinars, while the price of the English lira, weighing 8 grams, amounted to 297 dinars.
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Source : ألدستور