Arabictrader.com – The US dollar witnessed a strong rise during trading on Wednesday, which pushed it to its highest level in 6 weeks, despite the negative data for retail sales yesterday and the second failure in less than 7 days of the debt ceiling discussions between the administration of US President Joe Biden and the House of Representatives led by the party Exhibitions.
The most prominent factors that helped the rise of the dollar
The US dollar witnessed a strong recovery during today’s trading, supported by the statements of some hard-line US Federal Reserve members, led by member Loretta Mester as well as Raphael Bostick and Thomas Parkin, after yesterday’s retail sales data, which despite its negativity, showed growth, albeit less than expected, which is what It may be reflected in a slight slowdown in inflation and growth.
Bostick said yesterday evening that he believes that the US Federal Reserve is still far from reaching the inflation target, and added that the worst scenario that the US Federal Reserve may face at the present time is the acceleration of unemployment growth and the resistance of inflation rates to decline, and stressed the necessity of the bank’s commitment to controlling inflation as a priority. maximum.
Thomas Barkin, a member of the US Federal Reserve in the state of Richmond, stated that if high inflation continues, or accelerates in the worst case, there will be no obstacle whatsoever to prevent the Fed from raising interest rates further.
In the same hawkish tone, Cleveland Fed member Loretta Mester stated that she does not believe that the FOMC has reached the level of tightening enough to restrict demand and economic activity at the current rate.
Those hard-line statements, which followed the issuance of the retail data, led to an increase in investors’ appetite for the dollar today, although its gains remained limited in light of investors’ anticipation of the results of the debt ceiling issue discussions between the Biden administration and the House of Representatives led by Republican Kevin McCarthy.
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In terms of trading, the dollar index – which measures the performance of the US currency against a basket of 6 other major currencies – rose 0.32% to reach 102,930 points.
As for its trading against the other major currencies, the euro fell against the dollar by 0.30%, to record $1.0828, and the pound sterling fell against the dollar by about 0.1%, to $1.2475.
At the same time, and against safe havens, the dollar rose against the Japanese yen by 0.57%, recording 137.12 yen, and the dollar rose against the Swiss franc, by 0.43%, recording 0.9002 francs.
As for its performance against commodity currencies, the Australian dollar rose against its US counterpart by 0.1% to $0.6660, the New Zealand dollar rose against the US by 0.51% to $0.6264, and the US dollar declined against its Canadian counterpart by 0.9% to $1.3468 Canadian dollars.
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