According to a report from the Central Bank of Egypt, the dollar index rose by 0. 60% as a result of rising expectations for the Federal Reserve’s high interest rate (the US Central Bank).
The study states that this caused the dollar to rise at a faster rate than the losses it had at the start of the week, which were driven by falling bond returns, while the euro fell by 0.
Despite the release of the minutes from the September meeting of the European Central Bank, which highlighted the direction policymakers were heading in toward tighter monetary policy, 59% of currencies were against the strong dollar.
The fact that retail sales in the euro area fell more yearly than anticipated in August last year, indicating weak consumer demand, is noteworthy in light of the recent rise in recession fears in Europe.
The pound lost 0. 75% during the week, primarily as a result of the Bank of England’s announcement on Wednesday that it did not buy any British bonds as part of its emergency operations to support the bond market, This is for the second day in a row. The euro failed to reach parity with the dollar, ending the week at 0. 9744 dollars.
Fears also affected that such a procedure can add more turmoil to the British market, which has burdened the pound sterling.
from Cairo 24.
The Egyptian Central Bank publishes a statement lamenting the high dollar exchange rate.
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