Dollar rises to 16-month high – Al-Manar Channel – Lebanon



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The dollar rose to a 16-month high on Friday after the Federal Reserve kept interest rates unchanged and reaffirmed its stance on tightening monetary policy, prompting investors to raise interest rates in December.
The US currency fell sharply after the US election results on Tuesday on expectations that the election outcome would hamper additional fiscal stimulus.

But the dollar rose again and outperformed most major currencies today, bolstered by the strength of the US economy and rising interest rates.

The Federal Reserve is widely expected to raise interest rates in December on its fourth increase this year.

The recovery of the dollar, fueled by trade tensions as a currency of refuge, pushed the yuan to about 7 yuan against the dollar and moved the euro to $ 1.13.

In Japan, where interest rates are expected to remain at very low levels, the yen has approached a five-week low against the dollar and fell 2.2% in the last 10 sessions.

But the Japanese currency reversed course on Friday, up 0.2 percent to 111.86 yen per dollar.

The dollar index, which tracks the performance of the US dollar compared to the basket of the six major currencies, rose to a one-week high of 96.89, close to a record high of 16 months from 97.2 in 31 of October.

The euro was trading at $ 1.1343, losing 0.2 percent after falling sharply on Thursday.

The pound sterling hit $ 1.3015 in trading, down 0.4%.

The Australian dollar fell 0.2 percent to $ 0.724. The Australian dollar generally stumbles as sentiment weakens against China, Australia's biggest trading partner.

Source: Reuters

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