Forex markets

Forex – Dollar Drops to 3-Year Low as New Worries Begin

The US dollar fell to a three-year low against other major currencies on Friday as new concerns about US policy and, in particular, the growing budget deficit dampened the confidence that had come from recent US economic data.

The US currency went down in the face of continuing concerns over the US deficit, which is expected to climb to nearly $ 1 trillion in 2019, after corporate taxes plummeted and a large infrastructure program is planned.

The dollar initially gained in strength after the US Department of Commerce reported Wednesday that consumer prices rose more than expected in January, up 0.5%, boosting US bond yields.

Thursday’s data showed that the US producer price index rose 0.4% last month, in line with expectations.

Rising inflation rates could be the trigger that could push the Federal Reserve to raise interest rates faster this year than previously expected.

The US dollar index, which reflects the strength of the US currency against a weighted basket of six other major currencies, was 0.16% lower at 88:00, at 08:00 CET, its lowest rate since December 2014.

The USD / JPY fell 0.31% to hit 105.79, its weakest level since November 2016, while the USD / CHF fell 0.30% to 0.9196.

The euro and pound were up against the dollar, with the EUR / USD rising 0.27% to 1.2537 and the GBP / USD gaining 0.23% to 1.4128.

The Australian and New Zealand dollars were firmer. The AUD / USD has risen 0.35% to 0.7972 and the NZD / USD has gained 0.22% to 0.7424.

Meanwhile, the USD / CAD fell 0.16% to trade at 1.2469.

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Foreign exchange: Euro exchange rate in the US trade again over 1.25 dollars

The euro rose above $ 1.25 on Thursday in US trading. About one hour before the Wall Street closing, the common currency rose to $ 1,2503. The European Central Bank (ECB) had previously set the reference price at 1.2493 (Wednesday: 1.2348) dollars. The dollar cost 0.8005 (0.8099) euros.

With recent gains, the euro is again approaching its three-year high, reaching $ 1.2537 in January. According to foreign exchange expert Esther Reichelt of the Commerzbank (DE: CBKG), the market increasingly speculates that the ECB will take its foot off the accelerator because of the robust upturn.

In addition, the high level of debt in the US is becoming more prominent, weighing on the dollar and giving the euro a boost. “The debt ghost is back,” commented expert Reichelt the mood in the market.

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Foreign exchange: Eurocurrency temporarily above $ 1.25 – Turkish lira at record low

The euro followed on Thursday the price gains of the previous day, but can not quite keep his daily gain. Only in the morning did the common currency temporarily jump above the 1.25 US dollar mark. In the afternoon, it was trading at $ 1,2482. The European Central Bank (ECB) set the reference rate at 1.2493 (Wednesday: 1.2348) dollars. The dollar cost 0.8005 (0.8099) euros.

With recent gains, the euro is nearing its three-year high that it reached $ 1.2537 in January. According to foreign exchange expert Esther Reichelt of the Commerzbank (DE: CBKG), the market is increasingly speculating that the ECB will take its foot off the accelerator because of the robust upturn in monetary policy. In addition, the high level of debt in the US is becoming more prominent, weighing on the dollar and giving the euro a boost. “The debt ghost is back,” commented expert Reichelt the mood in the market.

With strong gains, the South African Rand responded to the resignation of head of state Jakob Zuma. The national currency rose to its highest level in nearly three years. Meanwhile, investors only had to pay out $ 11.60 for a dollar.

The development of the Turkish lira is quite different. This has depreciated significantly against the euro since the beginning of the year and fell again to a record low on Thursday. At times, 4,7268 lira had to be paid for one euro, more than ever. The record low of the Turkish currency is to some extent explained by the current strength of the European single currency.

Among other major currencies, the ECB set the reference exchange rates for one euro at 0.8866 (0.8904) pound sterling, 133.11 (132.40) Japanese yen and 1.1545 (1.1519) Swiss francs. The troy ounce of gold was fixed in London this afternoon at 1352.45 (1336.25) dollars.

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