SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 11 Feb, 2024  

US Flag THMB US dollar strengthening again as Wall Street accepts that interest rate cuts are coming later than expected

US Flag
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
IANS | 11 Feb, 2024
The US dollar greenback is strengthening again after a bumpy 2023, as Wall Street accepts that interest rate cuts are coming later than previously expected, a media report said.

The US Dollar Index, which tracks the dollar against the British pound, euro, Swiss franc, Japanese yen, Canadian dollar and Swedish krona, is up 2.8 per cent for the year as of Friday, CNN reported.

The US currency slid last November and ended the year lower against that basket of currencies as investors grew optimistic that the Federal Reserve would soon cut interest rates. But Fed Chair Jerome Powell said in January that interest rate cuts are unlikely to begin in March, as investors widely believed would happen.

Piping hot economic data in recent weeks has supported the notion that the Fed will keep rates higher for longer. The Consumer Price Index rose 3.4% annually in December, still above the central bank’s 2 per cent target.

A stronger dollar is bad news for American companies that generate most of their revenue overseas, since it means fewer dollars for their bottom lines when other currencies, such as the euro, are converted into US dollars. But it also means that US companies and consumers could spend less for imported goods, and Americans’ purchasing power increases when traveling abroad, CNN reported.

Other countries’ monetary policy decisions also affect the greenback’s trajectory. The European Central Bank in January kept rates unchanged. But if ECB President Christine Lagarde so much as hints at a rate cut coming this summer, that could continue driving the dollar higher, said Quincy Krosby, chief global strategist at LPL Financial.

Higher interest rates tend to garner more international capital to flow into a country, raising demand for the currency and thus its value.

The 10-year US Treasury yield has jumped back above 4% this year as investors recalibrate their rate expectations, providing another boost to the US currency, CNN reported.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter