He super dollar rose this Monday against a basket of currencies, as Traders paid little attention to an unsurprising lending survey and other economic data that could provide fresh clues about the Federal Reserve’s rate-hike path.
The Fed’s quarterly survey showed that banks they continue to restrict credit and that the demand for business loans is lower.
The dollar index, which measures the performance of the greenback against a basket of six currencies, it rose 0.1% to 101.38 units. Last month it had stood at 100.78, its lowest level in a year.
“People are finally going to be able to wait for the inflation report and that’s probably why we’re seeing more dollar strength.”held ed moyaSenior Market Analyst at OANDA in New York.
Moya said the credit crunch is likely to persist, which could justify recession forecasts and make Federal Reserve spokesmen anticipate that a soft landing might not be possible.
“But I think this report supports much of the easing in loan demand stemming from the Fed’s aggressive rate hike campaign.”
Last week the Fed raised rates 25 basis points but was somewhat more cautious than its peers on the outlook, brushing aside guidance on the need for further rate hikes.
The pound fell 0.12% to $1.2614. The British currency had reached its highest level since April 2022 in the session, at $ 1.2668. The pound is in the spotlight this week ahead of the Bank of England’s expected rate hike on Thursday, and has also strengthened against the euro.
Against the dollar, the euro, which had rallied nearly 16% from its September lows, fell 0.15% to $1.1003., supported by expectations that the European Central Bank will keep interest rates high for longer than the US Federal Reserve. Elsewhere, the dollar rose 0.2% to 135.14 yen.
Source: Ambito
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