March 29, 2023

Dubai Week

Complete Dubai News World

Dollar retreats to three-month low

The dollar fell on Wednesday after hitting a three-month high as investors adjusted to the possibility of a longer rate hike after Federal Reserve Chairman Jerome Powell surprised markets on Tuesday. A hawkish approach to policy.

Powell said the central bank may need to raise interest rates more than expected after the latest strong data, and the bank is prepared to go further if the “bulk” of incoming data points to the need for more aggressive measures to control inflation.

This prompted dealers and investors to reconsider their interest rate expectations.

The dollar index fell 0.09 percent against a basket of currencies in recent trade to settle at 105.54, after hitting 105.88 the previous day, its highest level since December 1.

That level was up from a nine-month low of 100.80 on Feb. 1, but well below the 20-year low set on Sept. 28 at 114.78.

The euro was up 0.03 percent at $1.0551, after earlier falling to $1.0524, now trading at its lowest level this year at $1.04820, recorded on Jan. 6.

The dollar fell 0.26 percent to 136.80 yen, up from 137.90 earlier, the highest level since Dec. 15.

And sterling added 0.06 percent to $1.1834, its lowest level since Nov. 21, after earlier falling to $1.18105.

The Australian dollar rose 0.23 percent to $0.6600, after earlier touching $0.6568, its lowest level since November.

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