The dollar is at a one-year low
September 19, 20242 Mins Read
Jumbangla Desk: The value of the US dollar has further decreased. The U.S. dollar index, which measures six major world currencies, is down three percent since early August. As a result, the value of the currency is now at its lowest level in over a year. However, it is believed that this currency will turn around again soon. News from Financial Times.

Dollar

The U.S. dollar fell to a one-year low against major world currencies, largely ahead of the Federal Reserve's rate cut.

The value of the US dollar in global markets depends on the Federal Reserve's policy interest rate and the health of the US economy. The US inflation rate is expected to decline consistently over the past few months, with the Federal Reserve's monetary policy committee meeting to cut policy rates today (September 18). In this context, the exchange rate of the dollar is decreasing.

Investors expect the Federal Reserve to cut interest rates to 0.50 percentage points in the first step, according to Reuters. However, as previously expected, policy interest rates will be cut to 0.25 percentage points traditionally, which is one of the reasons for increasing pressure on the dollar. The Fed's policy rate is currently in the range of 5.25 to 5.50 percent, the highest in 23 years.

At the same time, due to the increase in the exchange rate of other important currencies of the world, the dollar exchange rate has decreased, according to the news of the Financial Times.

The Japanese currency yen is now at its highest since July last year. The reason for the appreciation of the Japanese currency has been attributed to the opposite stance of the central banks of the two countries. While the Federal Reserve is about to cut interest rates, the Bank of Japan has already started raising interest rates.