The dollar, a safe haven, ended the week on Friday with new gains, especially against the yen, which fell as the Bank of Japan (BoJ) maintained its extremely accommodative monetary policy. At around 18:15 Greenwich Mean Time, the dollar index, which compares the dollar exchange rate with a basket of other currencies, rose 1.02% to 104.69 points. Against the yen, it increased by 1.99% to 134.90 yen. During his first public intervention on Friday, two days ago, after the sharp rise in key interest rates set by the Federation, US Federal Reserve Chairman Jerome Powell praised the international role of the dollar, which should be provided by monetary means. policy aimed at curbing inflation.
“The firm commitment of the FRS to its mandate to ensure price stability contributes to the widespread reliance on the dollar as a storehouse of value.”said Jerome Powell at a conference on Friday. “The Federation’s commitment to financial stability (…) encourages the international community to keep and use dollars.”, he added. The US Federal Reserve announced a 0.75-point increase in interest rates on Thursday in the event of a fall in the dollar, the largest rate in 28 years, as investors finally continued to bet on the currency. “The Fed has reminded us that its commitment to restoring price stability is unconditional.”noted Edward Moyan from Oanda brokerage company.
For Rabobank analyst Jane Foley. “It will take time for the greenback to recede, given the lack of confidence in global growth, the lack of appetite for risky assets.”. The recovery of the December exchange rate after the short fall of the previous day was also conditioned by the fall of the yen after the Bank of Japan maintained its negative exchange rate on Friday. The BoJ also announced the continuation of the policy of unlimited purchase of Japanese government bonds. The Japanese currency was approaching its lowest level since 1998, reaching 135.59 yen on Wednesday. In the United Kingdom or the eurozone, central banks want to respond to inflation, but are less determined than the Fed to raise interest rates.
The Bank of England was satisfied with the growth of 0.25 points, disappointing the investors. The US currency increased by 1.04% against the British, amounting to 1.2223 dollars per pound. The European Central Bank, which last week promised to raise interest rates in July, regrouped in a bid to stabilize the European debt market. The euro lost 0.49 percent against the dollar, to 1.0497 dollars per euro. “The era of unity (monetary policy, ed. Note) seems to be over. “There is no doubt that central banks will continue to monitor financial markets to avoid major disruptions, but the challenge of price stabilization.” becomes a priority, comments Commerzbank analyst Antje Prefke. The cryptocurrency bitcoin was down from $ 21,000 to $ 20,564 (-54%).
Friday lesson Thursday lesson
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18:45 GMT 21:00 GMT:
EUR / USD 1.0497 1.0549:
EUR / JPY 141.61 139.47:
EUR / CHF 1.0178 1.0197:
EUR / GBP 0.8587 0.8541:
USD / JPY 134.90 132.21:
USD / CHF 0.9697 0.9666:
GBP / USD 1.2223 1.2352:
Source: Le Figaro
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