The global dollar rises due to the news in European central banks

The global dollar rises due to the news in European central banks
The global dollar rises due to the news in European central banks

Driven by the falls in the Swiss franc and the pound sterling, the US currency improved its value by 0.2% while uncertainty over the Fed continues.

Photo: Vecteezy

He global dollar rose in the early hours of Thursday, unlike the Swiss franc and the pound sterling, that retreated in the middle of a hectic day of central bank meetings that keep traders alert.

He dollar index, which compares the performance of the greenback with a basket of six internationally relevant currencies, rose 0.2% to 105.42 units, after ten days of volatility in which the US economy has given contradictory signals and European markets have been shaken by the French political uncertainty.

One of the reasons for this slight improvement in its value was the fall in the pound sterling —0.2% to 1.2691 dollars— after the announcement of the monetary policy of the Bank of England that kept rates unchanged; and of Swiss franc after the Swiss National Bank lowered interest rates to 1.25%, after the March cut.

He American dollar rose last week, while the euro fell to its lowest level since May 1, as markets feared that the French president’s bet, Emmanuel Macron, calling parliamentary elections could pave the way for the extreme right or the extreme left to come to power.

This week, however, the markets have been calmer. He dollar, Meanwhile, it fell after data on Tuesday showed that retail sales of USA were lower than expected in May, adding to some signs that the economy is slowing and could allow the Federal Reserve (Fed) cut interest rates in September. However, other data showed that manufacturing production increased last month, which maintains uncertainty amid the restraint expressed by Central Bank authorities.

For his part, the euro fell again on Thursday, 0.16% compared to the dollar, to $1.07285, but still above the six-week low of $1.0667 hit on Friday.

Source: Ambito

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