The dollar fell to the lowest level in the three and a half years against the euro and the British pound today, Thursday, in a large -scale sale wave, with dealers expected that the Federal Reserve (the US Central Bank) will decide to reduce interest rates.
“The focus this week was on the Federal Reserve and the possibility of reducing interest rates in a closer time and maybe increasing the number of reduction times,” said Eric Theuret, a foreign exchange expert at Scotia Bank in Toronto.
The President of the Federal Reserve, Jerome Powell, stressed “the need for the US Central Bank to stabilize his position because he expects to increase prices this summer.”
And US President Donald Trump will appoint a new president next year for the council, which is expected to be more inclined than Powell, whose duration will end in May, to facilitate monetary policy.
Traders of the Futures Futures Funds Futures raised their expectations to reduce interest rates to 65 basis points by the end of the year from 46 basis points on Friday, and it is expected to be the first reduction in September.
The euro rose in the latest transactions 0.39 percent to $ 1.1705 and reached $ 1.1744, the highest level since October 2021. The pound sterling rose 0.45 percent also to $ 1.3728 and reached the highest level since October 2021 at $ 1.3764. The Swiss franc reached its highest level in ten and a half years, recording $ 0.80. The dollar fell 0.61 percent to 144.38 yen.
Trump’s chaotic policies related to customs duties are due to the spotlight with the approaching deadline he set to conclude commercial agreements, which is on the ninth of July.
The dollar is also under pressure with the trend of international investors to redistribute their investments away from American assets due to concerns about the prospects for the US economy and the currency. For encrypted currencies, it decreased by the formation of 0.65 percent to 107.144 dollars.
