Friday, May 24, 2024

Dollar and Euro stabilize after strong results from US banks

Date:

Dollar and Euro

dollar

The dollar index fell 0.1% to 101.89

Published in:
Last Updated:

The dollar and euro were flat on Thursday after strong results from US banks bolstered expectations that the Federal Reserve (US central bank) and the European Central Bank will continue to raise interest rates.

Yesterday, Wednesday, Morgan Stanley reported better-than-expected first-quarter profit, buoyed by strong results from major US banks and a widening banking crisis after the collapse of Silicon Valley and Signature Bank and its emergency takeover of rival UPS. Credit Suisse.

The dollar index, which tracks the greenback’s performance against a basket of other major currencies, fell 0.1% to 101.89 after falling on Friday to its lowest level since early February.

The euro was up 0.1% against the dollar at 1.0964, near a one-year high it touched last week against the greenback.

“Banking results continue to show that the financial position of US banks is stable,” said Sim Mo Cheong, currency expert at Bank of Singapore. This, he said, led to bets on low interest rates being withdrawn.

Statements from policymakers from the Federal Reserve and the European Central Bank also supported the euro and dollar.

New York Fed President John Williams said on Wednesday that inflation was at a critical level and that the US central bank would work to reduce it.

Economists polled by Reuters expect the central bank to raise interest rates by a final 25 basis points in May before locking them in until late 2023.

See also  Oil Fall - Economy - World Economy in the fifth session in a row

In Europe, Claes Knott, a policymaker at the European Central Bank, said inflation was still high and “adequately accommodative stance” was needed.

The European Central Bank is expected to raise interest rates for the seventh consecutive meeting on May 4, with policymakers agreeing to raise them by 25 basis points even as they have yet to agree on a major move.

Elsewhere in the world, the New Zealand dollar fell 0.4% to 0.6175 per dollar.

The British pound settled at 1.2430 against the dollar, hitting a 10-month high of 1.2545 against the greenback and touching it on Friday.

The Australian dollar was up 0.12% against the dollar at 0.6722.

The Japanese yen settled at 134.64 after trading above 135 against the dollar for the first time in a month on Wednesday.

Read more

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

Share post:

Popular

More like this
Related

Cost-effective drilling: how to reduce operational expenses by smart equipment choices

Drilling costs affect the profitability and sustainability of oil...

Navigating the World of Cryptocurrencies: How to Choose the Best Crypto Wallet

In the digital age where cryptocurrencies are rapidly gaining...

Unlock the easiest way to get EU citizenship of Slovenia and Romania with Union Permits

Due to the nature of their immigration programs, Slovenia...

The Ultimate Guide to Men’s Facials in Dubai

In the bustling city of Dubai, where the sun...