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THE DOLLAR SINKED UNDER THE LOWEST LEVEL IN TWO MONTHS

The dollar sank below a two-month low against its biggest rivals today as a disappointing US employment report forced investors to lower interest rate expectations, and this week they shifted their focus to published inflation data.

The United States created 266,000 new jobs in April, and the unemployment rate rose unexpectedly, a “cold shower” for speculation about accelerated inflation.

The dollar index, which measures the movement of the US currency against the basket of the six largest competitors, stood at 90,259 points in Asian trading, after sinking to only 90,128 points at one point for the first time since February 26, Reuters reports.

The British pound was the biggest winner among the most traded currencies, up 0.5 percent to its highest level since February 25, despite Scottish Prime Minister Nicholas Sturgeon saying another independence referendum was inevitable after her party won the election.

“The downward trend in the US dollar may continue this week,” Commonwealth Bank of Australia strategist Kim Mundi wrote in a note to clients, predicting the euro to rise above $ 1.22.

“The unexpectedly slow recovery in the US labor market reinforces the need for a prudent approach by the Monetary Market Operations Committee (FOMC) in policy implementation,” with “improving global economic outlook on medium-term pressure on the US dollar,” Mundi added. .

The euro rose 0.1 percent to 1.2172 USD, initially reaching its highest level since February 26, at 1.2177 USD.

According to the Japanese currency, the dollar strengthened to 108,865 yen, but still close to the minimum recorded on April 27.

The British pound jumped to $ 1.4058 as traders gave more importance to the UK’s economic recovery than to the potential for another Scottish referendum, according to National Bank of Australia strategist Gavin Friend.

Any independence vote is “a long way off and in our opinion is not at the moment something that could significantly affect the British pound,” he added, estimating the exchange rate at $ 1.45 a pound by the end of June.

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