On Friday, the dollar resumed a sharp rise, prompted by the prospect of tighter monetary policy in the United States, while the yen fell as the Bank of Japan maintained its extremely adjustable monetary policy. At around 12:35 GMT (14:35 Paris), the dollar index, which compares the dollar to a basket of other currencies, rose 0.73% to 104.58 points. If the dollar fell on Wednesday night, the announcement by the US Federal Reserve (Fed) of a rise in the exchange rate by 0.75 points continues to prompt analysts to bet on the currency. «It will take time for the greenback to recede, given the lack of confidence in global growth and the lack of appetite for risky assets.commented Rabobank analyst Jane Fallin.
The Bank of Japan maintained its negative interest rate on Friday and will continue its policy of unlimited purchases of Japanese government bonds, which had a large weight on the yen. The Japanese currency fell 1.71% to 134.51 yen per dollar, approaching its lowest level since 1998 at 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 increase of 0.25 points, disappointing investors, and the European Central Bank, which promised to raise interest rates last week, regrouped in an attempt to stabilize the European debt market.
The US currency rose 0.45% against the euro to $ 1.0503, and against the British pound by 0.57% to $ 1.2281. On the other hand, the Swiss National Bank (SNB) raised its interest rate by 0.5 points, allowing the Swiss franc to stand against the dollar (+ 0.36% to 0.9631 Swiss franc). «The era of unity (monetary policy, editor’s note) seems to be over. There is no doubt that central banks will continue to control financial markets to avoid major disruptions, but the challenge of price stabilization.Commerzbank analyst Antje Prafke comments. As for cryptocurrencies, bitcoin recovered by 1.2% to $ 20.914 after ten consecutive downtrends.
Source: Le Figaro
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