On currency markets, the value of the dollar rose against a basket of currencies last week, after the leaders of the American central bank indicated that a further tightening of monetary policy is possible.
The dollar index, which measures the value of the US against the six most important world currencies, rose 0.7 percent last week to 105.85 points.
At the same time, the dollar strengthened by 0.4 percent against the European currency, and the price of the euro fell to 1.0685 dollars.
The dollar also rose against the Japanese currency, by 1.4 percent, to 151.50 yen, not far from its highest level in a year.
Last week, the dollar made up for part of the loss from the previous week, when it was sharply lower as investors concluded that the US central bank’s interest rate hike cycle was over.
Well, Fed President Jerome Powell has also poljuljao, who said last week that monetary policy could be tightened further.
At the meeting of the International Monetary Fund, Powell said that he was satisfied with the weakening of inflation, but that he was not sure that the Fed had done enough.
“The Fed is determined to set a sufficiently restrictive monetary policy to bring inflation down to the target level. I’m not sure we’ve achieved that yet,” Powell said.
In addition to Powell, many other Fed officials have signaled that another interest rate hike is possible, given that inflation is still well above the Fed’s target level of 2 percent.
Next week, reports on consumer prices and retail trade turnover at the SAD will be published, which could give new indications as to whether there is a need for further tightening of monetary policy.
The market is still dominated by the idea that the Fed will no longer raise interest rates.
It is believed that the European Central Bank will no longer increase interest rates, given that inflation in the Eurozone is gradually easing.
Well, on Friday, ECB President Christine Lagarde said that interest rates would remain at record levels long enough for inflation to return to the target of 2 percent.