The dollar strengthened against the currency

New York, (MINA-BUSINESS) – The dollar strengthened against the basket of currencies this week after the leaders of the US central bank announced that 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 this week to 105.85 points.

At the same time, the dollar strengthened against the European currency, 0.4 percent, and the price of the euro fell to 1.0685 USD.

The dollar exchange rate also rose against the Japanese currency, 1.4 percent to 151.5 yen (JPY), not far from the highest level for a year, reports Hrportfolio.

This week, the dollar recovered some of the losses from the previous week, when it fell sharply after investors concluded that the US central bank’s cycle of interest rate hikes was over.

However, this thesis was rejected by the chairman of the Fed, Jerome Powell, who said that further tightening of monetary policy is possible.

At the meeting of the International Monetary Fund (IMF), he said that he is satisfied with the weakening of inflation, but that he is not sure that the Fed has done enough.

“The Fed is determined to establish a sufficiently restrictive monetary policy to bring inflation down to the planned level. I’m not sure we’ve achieved that yet,” Powell said.

In addition to Powell, many other Fed officials said another rate hike is possible, given that inflation is still well above the Fed’s planned two percent.

Next week, reports on consumer prices and retail sales in the United States (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 not raise interest rates.

It is believed that the European Central Bank (ECB) will no longer raise interest rates, given that inflation in the Eurozone is gradually easing.

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