The dollar remains at a maximum of 2 months. The euro continues to strengthen
On Wednesday the dollar is stable at around a maximum of two months against the basket of currencies. This is due to the yield increase of treasury bonds and the “hawkish” statements of the representative of the Federal Reserve System.
Strengthening of the euro continues after it became known about possible changes in the European Central Bank’s policy.
Meanwhile, the pound sterling is being kept at a minimum point for almost thirty years due to the anxiety that Brexit can become a painful procedure with significant economic consequences.
By Wednesday morning the US Dollar Index has fallen by 0.12 percent and amounted to 96.057.
On Tuesday the US currency was supported by the comments of Jeffrey Lacker, president of the Richmond Fed. He said that the Fed needed to raise rates slowly, “but not little by little”. He noted that the current low level of interest rates might inform the inertia of the inflation above the 2 percent target of the central bank in the next couple of years. Following the increase in European treasury bonds the yield of the US Treasury bonds is growing, too. The yield has reached its peak over 2 weeks.
The euro has risen against the dollar by 0.1 percent, amounting to $ 1.1214.
The fluctuations of the dollar against the yen were insignificant – close to the mark of 102.95 yen. In the recent past the dollar reached the maximum for three weeks, which amounted to 102.965 yen.
The British pound has risen by 0.1 percent against the US dollar, amounting to $ 1.2740, but, nevertheless, it is being traded at the minimum mark for 31 years – $ 1.2720.