The value of the dollar value to the currency basket has fallen and last week, third in a row, as they strengthened expectations that the American Central Bank would reduce the key interest rates in September.
The dollar index, which shows the value of US towards the six most important world currencies, weakened 0.10 percent last week, to 97.73 points. The euro exchange rate strengthened 0.15 percent, to $ 1,1715. The American currency weakened 0.15 percent and in relation to Japanese, so the price of the dollar slid to 146.95 yen.
Almost the whole week of the dollar index ranged above the level of 98 points, while investors were waiting for Speech by President of Fed Jerome Powell at the traditional annual central bankers in the American town Jackson Hole.
The most important question in the markets whether Powell signaled the interest in interest or for a long time – that the FED should not be rushed with interest reduction until the increase in customs imports affected the inflation, Hina reports.
The latest data show that the American labor market weakens, which is the main reason for reducing interest. On the other hand, the latest data also show that inflation is still elevated, which does not leave a lot of space for such a move of Fed. And, finally, on Friday, Powell said that now the risks in the economy were balanced and that the time for the monetary policy adjustment is approached.
This is interpreted as a signal that the FED will be on the session 17. September, 0.25 percentage points, so the value of the currency basket sank almost 1 percent and thus recorded a decade in the third week in a row.
