Dollar is the highest level in a month
Friday – 19 months from Ramadan 1440 H – 24 May 2019 AD Issue number [
London: Middle East
The dollar reached one month high as economic and political uncertainty spread across Europe and Asia, pushing most major currencies like the euro and the yuan to collapse.
There are concerns about Germany's manufacturing sector, the impact of the trade war on Asia's economies, and concerns about Britain's departure from the European Union and the forthcoming parliamentary elections in Europe deepening at times of difficulty for many. from countries in Europe and Asia.
The dollar index, which tracks the performance of the greenback, against a basket of 6 big currencies, reaches 98.189, the highest level since April 26, when it reached a peak of two years from 98.33.
The euro fell to one month from $ 1.1133 in early trade, while the pound fell below $ 1.26 for the first time since the beginning of January.
The Yen roughly increased on Wednesday as continuing trade concerns about the US and China, concern about Britain's departure from the EU, stimulated conflict with risk, encouraged Japanese currency to rise as a safe haven.
The Yen rose 0.1 per cent to 110.23 per dollar, having risen from a low fortnight hit of 110.675 on Tuesday. Japanese currency rose 0.2 per cent against the euro, 0.5 per cent higher against the pound and 0.3 per cent against the Australian dollar.
This comes as US Federal Reserve officials agreed at their last meeting that their current approach to financial policy patience could continue "for some time", in a new sign that policy makers do not see much need to adjust prices Interest up or down.
According to minutes of April 30 and May 1 meeting of the Federal Reserve, officials discussed support mechanisms that would enable them to structure their holdings of securities, which are estimated to be trillions of dollars in the best way to withstand any future economic slowdown.
The Fed held its last meeting, before US President Donald Trump's administration increased tariffs on Chinese goods, and intensified global trade tensions, with restrictions on Huawei.
At that time, as US growth continued, inflation remained “silent” and some global risks appeared to be easing, members of the Monetary Policy Committee felt “there would be a patience approach. is still appropriate for some time … even if economic and financial conditions continued Global Recovery ».
While "few" participants have warned about the risks of inflation and the potential need to raise interest rates, and warned several "participants" that inflation could decline, minutes of the MPC meeting showed that the committee was going to wait until that convincing change in economic data in one direction. The Committee kept the target interest rate unchanged at that meeting, staying at 2.25 and 2.5 per cent.