US dollar rose after increasing investors’ expectations for tightening of monetary policy

November 8, 2017 1:34 pmComments Off on US dollar rose after increasing investors’ expectations for tightening of monetary policyViews: 44

USD AUDThe US dollar rose on Tuesday, supported by the investors’ expectations that the divergence in the monetary policy of the Federal Reserve and the European Central Bank will continue to expand. The US dollar index, measuring the change of green money against the basket of six major currencies, rose by 0.15% to 94.89 points.

Among the market participants, there was a stronger focus on divergence in Fed’s monetary policies and the majority of other central banks. The idea is that the US we will see monetary policy normalization long before other developed economies are back on the agenda and boost the dollar

Meanwhile the Australian dollar dropped by 0.59% to 0.7645 USD after the Australian central bank maintained its base interest rate at no more than 1.5% at its November session. The economists’ expectations were that the central bank will keep interest rates at their current levels indefinitely, given the weak domestic inflation figures and the high level of household indebtedness.

During the day the British pound declined by 0.2% against the dollar, deleting some of the profits made at the beginning of the week. Piraeus lost positions with a view to starting the next stage of negotiations on the Brexit.

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