The weak dollar is rising in anticipation of rate hikes in the U.S.

The weak dollar is rising in anticipation of rate hikes in the U.S.


On Thursday, investors awaited speeches from fed officials, which should provide details on expected base rate increase. Against this background, the dollar index at the auction grew by 0.11%.

MOSCOW, 10 Nov. The dollar slightly strengthened against global currencies in anticipation of an early increase in the base rate of the Federal reserve system (FRS) the USA, according to AFP.

As at 13.20 GMT the dollar against the yen fell to 123,14 yen per dollar with is 123.17 yen per dollar at the previous closing. The Euro-dollar exchange rate decreased to 1,0743 1,0753 of the dollar from the dollar to the Euro. The dollar index (the dollar against a basket of currencies of six major U.S. trading partners) grew by 0.11% to of 99.11 points.

Market participants are waiting for Thursday three representatives of the fed — head of the regulator Janet Yellen, Vice Chairman Stanley Fischer and the head of the Federal reserve Bank of new York William Dudley. Investors are hoping to hear from them details regarding the expected base rate increase.

In addition, on Friday will be released data on retail sales in the U.S. in October. According to analysts, the rate accelerated to 0.3% from 0.1% a month earlier. If the forecasts are correct, coupled with good statistics on the labour market may strengthen expectations of monetary policy tightening in the US and lead to growth of the American currency.