A decrease of the indicator value may contribute to the fall in quotes of USD.
5 September
Dollar News (USD)
Categories
A survey by the Official Monetary and Financial Institutions Forum (OMFIF) found that one in three central banks plan to cut their dependence on the dollar and ramp up gold holdings over the next year or two.
24 June
The US dollar weakened against most major currencies after President Donald Trump announced an agreement to help stabilize the Middle East. This also boosted investor appetite for riskier assets.
24 June
Foreign investors cut dollar asset holdings — Reuters
Reuters analysts note that global investors appear to be gradually reducing their dollar-denominated asset holdings. This trend has driven the US currency to its weakest level against a basket of major currencies in 3 and a half years.
24 June
Fed’s Michelle Bowman insists on interest rate cut in July
On Monday, Federal Reserve (Fed) official Michelle Bowman stated the need to lower interest rates during the regulator's July meeting. As Associated Press notes, the lack of unity among Fed representatives regarding rates has drawn criticism from the White House.
24 June
US manufacturing increases simultaneously with inflation strengthening
According to Bloomberg, in June, US manufacturing demonstrated stable growth. Partially it was caused by employment growth while two key inflation figures accelerated to its peaks from July 2022. Meanwhile, the index of input costs surged 5.4 points to 70, marking the biggest jump in four years.
24 June
US Fed Chair Jerome Powell to defend current monetary policy before Congress
As reported by Bloomberg, Federal Reserve Chair Jerome Powell is set to testify twice this week before US lawmakers. He’s expected to defend the central bank’s decision to hold interest rates steady at least until September.
24 June
No change of the indicator value may reduce the volatility of the related markets.
23 June
Analysts at Bank of America Securities keep a bearish stance on the dollar and forecast the euro to reach $1.17 by the end of the year. Still, in the short term, geopolitical tensions create risks for the European currency as well, they believe.
23 June
According to Investing.com, oil prices surged following escalating tensions in the Middle East, causing investor concern about a potential spike in US inflation. However, according to experts at Morgan Stanley, the impact of these events will be "minor."
23 June
US Federal Reserve split on pace of rate cuts
After the US Federal Reserve (Fed) kept borrowing costs unchanged last week, central bankers have been split on the further pace of rate cuts.
23 June
The dollar is the monetary unit of the United States (US). It is also used as the official currency by some other countries (Ecuador, Zimbabwe, El Salvador). The dollar holds a leading position in the world economy.
At the moment, the dollar dominates the system of international settlements with almost 50% share (the euro ranks second with less than 25%). Meanwhile, the dollar's dominance is even more pronounced in the financial sector, on the foreign exchange market, and in the government reserves.
The US currency (USD) quotes, as well as those of its foreign counterparts, depend primarily on the economic and political situation in the issuing country. The US authorities, such as the Federal Reserve System (the Fed) and the Department of the Treasury, influence the dollar exchange rate by changing their monetary, fiscal, budget, and tax policies.
Moreover, the value of the dollar may be significantly affected by the latest news and the international situation. Global economic problems and rising geopolitical tensions have historically been favorable for the US currency, as investors consider it one of the major safe-haven assets, along with gold. In contrast, during periods of strong economic growth and a relatively calm global environment, the demand for the dollar tend to reduce.
