In the New York foreign exchange market, the dollar has risen against the euro and pound. With interest rates in the euro area and the UK expected to remain low for the foreseeable future, the US Federal Open Market Committee (FOMC) will be in the spotlight next week. The dollar index against major currencies increases 0.57% to 90.810. The weekly growth is the highest since the beginning of May.
The euro and dollar pair fell 0.63% to $ 1.209. On a weekly basis, it is expected to drop significantly since the end of April. European Central Bank (ECB) board member Knott, Dutch central bank governor, said on11th that inflation has finally picked up due to the aggressive fiscal mobilization of Eurozone governments, but monetary policy capacity is limited. It is pointed out that a new fiscal discipline is needed to continue aggressive fiscal stimulus over the next few years.
The ECB Board of Directors on the 10th decided to maintain the scale of the Pandemic Emergency Purchase Program (PEPP) at the current level as expected. While strengthening the economic judgment, it was judged that if it shrinks at this point, it will lead to an increase in borrowing costs, and the economic recovery may be disrupted.
“ECB officials have suggested that inflation (in the euro area) has not reached a level that puts upward pressure on interest rates,” said Karl Chamotta, chief market strategist at Cambridge Global Payments.
The pound/dollar pair was down 0.54% to $ 1.4098. In the UK, the number of infections of the new coronavirus mutant Delta has skyrocketed, and it is unclear whether the UK Prime Minister Johnson’s goal of completely lifting the lockdown in England on June 21 will be realized. High-risk currencies also fell against the US dollar. The Australian dollar was down 0.72% to the US $ 0.7697. The New Zealand dollar fell 1.01% to the US $ 0.7123 after temporarily sinking to its lowest since May 4.
In crypto assets (virtual currency), Bitcoin rose 0.3% to $ 36,817.94. It is expected to rise by 3% in the week. Ether is down 3% in late trading. It is expected to fall by 11.7% even in the week.
Here’s how the economy is doing:
Dollar / Yen NY closing price 109.65 / 109.68
Opening price 109.46
High price 109.83
Low price 109.45
Euro/dollar NY closing price 1.2106 / 1.2110
Open price 1.2149
High price 1.2151
Low price 1.2094