With the Federal Reserve (US Central Bank) and England Bank expected to meet this week, the US dollar declined on Tuesday from its highest level in a week versus a basket of major equivalent currencies.
The Federal Reserve is largely anticipated to boost the benchmark interest rate by 75 basis points on Wednesday, marking the fourth such hike.
The predictions for the December meeting, however, are split between 75 and 50 basis points, according to the futures markets.
At its meeting on Thursday, the Bank of England is also anticipated to hike interest rates in Britain by 75 basis points before the rate of increase slows to 50 basis points in December.
The dollar index, which evaluates how the US dollar performs against six rival currencies such as the euro, pound sterling, and yen, fell by 0. 48% to 111.
Tuesday saw him reach 02 but lose some of the gains he made the day before. 79%.
The pound increased by 0. 55% to $ 1. 1529, when traders eagerly anticipated the England Bank meeting. The sterling price rose after falling by more than 1% the day before. The euro also gained 0. 47% to $ 0. 9923.
Due to a huge increase in federal interest reserves that resulted in major depreciation in other currencies and increased pressure on the global economy, the dollar index has increased by more than 15% since the start of the year.
The Australian and New Zealand dollars increased to their highest levels in a week as market sentiment generally improved.
The Australian Reserve Bank decided to maintain a slower pace of interest rate increases despite the unexpected spike in inflation to its highest level in 32 years in the third quarter, which caused the Australian dollar to lose some of its gains.
After the Australian Reserve Bank’s announcement, the Australian dollar dropped from earlier higher levels after increasing by 0. 57% to $0.6434. To $0. 5874, the New Zealand dollar climbed by 1.2%.
The dollar decreased by 0. 71% to 147. 68 yen.
The Japanese Ministry of Finance announced on Monday that it had spent $ 42. 8 billion, which is a record number to interfere in the currency market this month to support the yen after it fell to its lowest level in 32 years near 152 on October 21.
Today, the value of the Chinese yuan against the dollar reached its lowest point in 15 years before it started to recover after the central bank for the first time since 2008 established a guideline below the primary 7.2-dollar range.
The dollar will decrease if you are optimistic before the Federal Reserve and the England Bank.
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