The US dollar is on a decline once again

This morning, the US dollar declined against other world currencies due to the expectations on Fed decisions regarding additional measures that will help curb the increase in bond yields.

The Australian and New Zealand dollars arose amid news of an increase in business activity in both countries, following the mitigation of quarantine restrictions related to the COVID-19 pandemic.

Today, all attention is directed towards the US Fed, which at its meeting should have decided on steps that would curb the growth of bond yields. Most analysts believe that major changes in the monetary policy should not be expected, as there was an increase in government bond yields recently, which stimulated the growth of the US dollar.

Nevertheless, experts are confident that the United States does not need additional control over the value of bonds, but market participants think otherwise, making their uncertainty put pressure on the US dollar.

There is a high chance that the Fed will make true to these expectations, since the US seems to have passed the acute crisis in the economy, slowly progressing on to a positive recovery.

Thus, against the Japanese yen, the US dollar showed a decrease of 0.36% today, reaching a rate of 107.33 yen per dollar. It also ended with a 0.6% decrease in the last trading session.

The same situation was observed in the British pound, as the currency strengthened today against the dollar by 0.23%. Its rate went to the level of 1.2758 dollars per pound.

In the Swiss franc, the decline estimated to 0.19%, giving its current rate of around 0.9488 dollars per franc. This value is the lowest forex rate in the last three months.

Against the six major world currencies, the USD index also went on a decline, dropping by about 0.23%, which pushed the rate to a value of 96.23.

Albeit slightly, the European currency also rose against the dollar by 0.07%, amounting to 1.1348 euros per dollar.

The Australian dollar also arose by 0.23%, and began to bargain in the region of 0.6977 aussie per dollar. Its comrade, the New Zealand dollar, grew even more by 0.38%, which allowed the rate to become 0.6537 kiwi per dollar.

In the Chinese yuan, the US dollar decreased in price by 0.09%, giving a rate of 7.0693 yuan per dollar.

Market participants should also pay attention to the statistics and economic forecasts that will be published today, as it will present the level of recession the US economy has plunged.

Source: The US dollar is on a decline once again

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