The dollar rose against a basket of currencies yesterday, Thursday, after Federal Reserve (US central bank) Chairman Jerome Powell stressed the need to raise interest rates again, albeit at a “cautious pace.” A number of central banks have raised interest rates after raising concerns about the prospects for economic growth.
The Swiss franc fell and the Norwegian krone rose after the Bank of England, the Swiss National Bank and the Norwegian Central Bank raised interest rates to record levels.
The series of rate hikes came a day after Powell told members of Congress on Wednesday that continuing to raise US interest rates provides a “very good forecast” of what the Federal Reserve will do if the economy continues on its current path.
On the second day of Powell’s semi-annual testimony, he said the Fed may move interest rates at a “cautious pace” at this point.
The dollar index, which measures the greenback against six rival currencies, was up 102.4 points, or 0.372 percent, in recent trade.
The dollar rose 0.85 percent to 143.1 yen, the highest level in more than seven months. The Australian dollar fell 0.58 percent.
The pound fell 0.17% to 1.27465 against the dollar in a volatile session after the Bank of England’s monetary policy committee voted 7-2 to raise key interest rates from 4.5% to five, the highest rate since 2008 and the biggest increase in interest rates. From February.
The Swiss franc fell about 0.3% against the dollar after the Swiss National Bank raised its benchmark interest rate by 25 basis points to 1.75%.
The dollar fell about 0.05 percent against the Norwegian krone, more than most economists expected, after falling 1.3 percent after Norway’s central bank raised benchmark interest rates by 50 basis points to a 15-year high. Reuters, and they said that the bank aims to increase the other August.
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