After two weeks, the dollar value to the Currency basket last week increased because due to escalation of the conflict between Israel and Iran investors are looking for safer refugance for capital.
The dollar index, which shows the value of the US currency according to the six most important world currencies, increased by 0.6 percent, to 98.77 points. The euro exchange rate spa 0.2 percent, to $ 1,1525. The American currency also strengthened and in relation to Japanese, by 1.3 percent, so the price of the dollar reached 146.05 yen.
For a long time, the dollar is under pressure because of the vague, the Hirovite Customs Policy of the US President Donald Trump, so its value to the currency basket recently slipped to the lowest levels in three years. But since ten days ago, rocketing between Israel and Iran began, the dollar recovered a moment because it is known for a safer refuge in the insecure times, index HR.
The dollar support also provided a decision of the US Central Bank leaders at last week’s session on retaining interest rates at existing levels, despite tramping calls to reduce interest.
The President of the Central Bank of Jerome Powell told the Media Conference to expect inflation growth for the next few months, so the FED should not be rushed with the reduction of interest rates.
“Powell has made it clear that he does not intend to change the monetary policy until it is clear how customs will influence inflation,” says Peter Cardillo, economist in Spartan Capital Securities.
