The dollar fell today to its lowest level in two months, due to the hints indicated by officials of the Federal Reserve Board (the US Central Bank), which indicate that the monetary tightening cycle is approaching an end, while the pound rose to its highest level in 15 months after greater than expected growth in wages in Britain.
Statements made by officials yesterday that the Federal Reserve needs to raise interest again to curb inflation pushed the dollar to its lowest level in two months against a basket of currencies at 101.67, as dealers lowered their expectations about the size of the additional increase needed in interest rates.
Sterling rose to its highest level in 15 months at $1.2913 after wage growth in Britain hit a new record, increasing pressure on the Bank of England (British central bank) to take further measures to tighten monetary policy in order to control inflation.
The yen rose about 0.6%, dropping from the level of 141 yen per dollar for the first time in about a month. In his most recent transactions, he reached 140.455 yen to the dollar.
The euro increased 0.1% to $1.1012, while the Australian dollar settled at $0.6680, and the New Zealand dollar fell 0.2% to $0.6198.
The Chinese offshore yuan rose to 7.2055 against the dollar in the latest trade, after sentiment was boosted by the Chinese central bank’s extension of support for the ailing real estate sector.
