The Dollar is Rising But Remains at Low Levels

The US dollar index, which measures its performance against a basket of six major currencies, rose 0.25% to 93.58 points, moving away from its lowest level recorded yesterday at 93.277 points, the lowest level in nearly a month, and the dollar traded during the day at levels between 93.32 and 93.6 Point.

Investors ignored the gross domestic product estimates released Thursday, which showed the US economy slowing as it grew 2% year-on-year in the third quarter, its slowest increase since the end of the economic recession in 2020, against expectations of 2.8% growth.

Despite the rise of the dollar, it is still at low levels in light of the strong expectations of tightening monetary policies in the euro area as well as in Britain, and therefore despite Lagarde’s assurances yesterday that raising interest rates is not possible in the near time and does not match the expectations of the European Central Bank, which sees that inflationary pressures will fade starting from Next January, as the impact of the base year for German inflation declines, and pressures caused by supply chains begin to decline during 2022.

The US Bureau of Economic Analysis released the personal consumption expenditures price index data during the month of September, which revealed an increase of 0.2%, in line with market expectations, making a slight impact on investor sentiment and inflation expectations.