Tuesday , June 15 2021

The dollar is down when the Federal Bank reports that it is approaching the end of the balance sheet; Sterling up from Investing.com

© Reuters.

Investing.com – The US dollar suffered a weekly loss after dropping sharply against its rivals on Friday to the expectation that the Federal Reserve would become more sophisticated during the next week's meeting while the rally in the pound also weighed.

What the greenback measures against the basket-weighted basket of six major currencies declined by 0.86% to 95.47.

The dollar has been pressured by a report from The Wall Street Journal that the Federal Reserve is closer than expected to end its balance.

Previously, the Federal Reserve was not inclined to develop plans, if any, to put an end to its balance. But the decline in world markets at the end of last year after the Fed's decision to raise interest rates saw the central bank turn out to be weaker.

At a press conference after the Fed meeting in December, Fed Chairman Jay Powell said the central bank's balance sheet was "autopilot". But then he stepped back on these comments, assuring investors that the Fed would be flexible with all its policy tools. , including the balance sheet.

The Wall Street Journal report comes just days before the Federal Reserve meets for the first time this year. The Federal Reserve is expected to leave its key rate unchanged, but traders are likely to join Powell's press conference to understand the central bank's monetary policy thinking.

Meanwhile, the pound continued to add profits against green money to the expectation that British Prime Minister Teresa May's Plan B would do better than its initial withdrawal agreement, which suffered a humiliating defeat in the UK parliament on January 15th.

The United States' tabloid said on Friday that Northern Ireland's DUP, which supports the government of Teresa May, has agreed privately to support Maya B's plan if it includes a clear deadline for the Irish stop.

rose 1.1 percent to $ 1.3202.

The euro has cut some losses a day earlier when European Central Bank President Mario Draghi warned that eurozone growth is declining.

rose 0.98% to $ 1.1415.

rose by 0.09% to Y109.53 and remained at $ 1.3217, as the moon was boosted by rising oil prices that curbed the pair's profits.

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