On Wednesday, the dollar index continued to retreat from its highest level in 20 years, having already absorbed expectations that the Federal Reserve (the US central bank) would raise interest rates by half a point later in the day. and about 250 basis points. points by the end of the year.
The currency markets are in awaiting the announcement of the “Central Bank of the United States” and a press conference for its president, Jerome Powell, after witnessing highly volatile transactions in recent weeks, during which the dollar has jumped to the highest level of the last 20 years against a basket of competing currencies.
Money markets are betting that the US Central Bank will raise the interest rate to 3.6% by the end of 2023 to curb inflation, which has reached its highest level in 40 years.
Having already started its rate hike cycle in March, the bank is expected to hike it by 50 basis points today
Wednesday, as well as two other similar increases in the next two meetings.
Those bets raised the dollar index last month by 5% to 103.93, but it has since fallen 0.3% from those levels.
The strength of the dollar put pressure on other currencies and pushed the euro last week to a two-decade low near $ 1.0469.
The euro was trading at $ 1.0512 on Wednesday.
Read More About: Business News