Expected to raise interest rates support the US currency

Expected to raise interest rates support the US currency



22-02-2017 12:06 PM


East News -

London, Lagos - Reuters

The dollar rose broadly yesterday after two of policy makers in the Council of the Federal Reserve pointed to the possibility of raising US interest rates next month.

The dollar has faced difficulties in the first two months of the year, as it gave up all the gains against the euro and a number of other major currencies after the election of Donald Trump , president of the United States in November (November) last year.

The indicators to dissatisfaction Trump manage the dollar 's strength of the leading reasons for the decline, along with fears that the first month of the rule of Trump, which was characterized by chaos in some cases, does not bode well for the implementation of tax reform and new spending. But in contrast, there was strong economic data and rises in US inflation, which policy makers led the Federal Reserve, including its president Janet Yellen, to launch and promises to raise interest rates soon.

The euro lows in six days at $ 1.0562 in morning trading in Europe, down about 0.5 percent, as the dollar rose 0.6 percent against the New Zealand dollar and 0.5 percent against the Australian dollar and 0.4 percent against the Swiss franc.

In addition , traders yesterday announced that the Central Bank of Nigeria sold $ 500 million in futures contracts for a period of 60 days, to contribute to the strengthening of dollar liquidity in the interbank market (interbank), a day after a strong reduction in the value of the naira in the dealings of individuals.

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