Dollar exchange rate in tandem with the euro is rising : on Friday the cost had jumped to
maximum of nine months after the U.S. Federal Reserve unexpectedly raised an
rate.

According to Case, with reference to Bloomberg, the euro fell to 9:14 GMT on Friday
$ 1, 3474 with $ 1, 3527 at the end of the previous session in New York. During the bidding
the euro fell to $ 1, 3444, the lowest level since May 18 last year.
Rate of the U.S. national currency against the yen was at that time 91, 82 against the yen
91, 81 a day earlier. "The decision was a surprise and the Fed has raised expectations collapse
incentives in the U.S. faster than in other major countries. Through
that the dollar will rise, "- said the dealer SBI Liquidiy Market Tomokadzu
Matsufudzi. The Fed on Thursday raised interest rates on loans provided
in case of need for commercial banks through the discount window, to 0, 75%
with 0, 5%, sending the markets first signal the start of a exit strategy. In
statement released by the Central Bank after the close of the stock market, it is noted
that this step taken "in light of the continuing improvement in the
financial markets' is not preceded by the inevitable increase base rate
overnight, which is the main instrument of monetary policy
The Fed, he is not a tightening of policy. But markets have changed the expectations
with regard to increasing the base interest rate. According to the Futures
the level of rates, the markets have raised expectations for a rate hike 0, 25 percent
point in time before November to 100% from 96% the day before. The probability that a
this time the rate will rise by half a percentage point - to 0, 75%;
now estimated at 16%. The chances of an increase in borrowing costs in
September rose to 40%.

Share This Post: