US Dollar Continues to Decline! What happened? - Kakiforex.com - Financial Market Media No. 1 in the World US Dollar Continues to Decline! What happened? US Dollar Continues to Decline! What happened?

May 7, 2021

US Dollar Continues to Decline! What happened?

 The US dollar fell to a 3 -day low on Thursday as global market risk appetite increased. On the other hand, sterling also depreciated after the Bank of England (BoE) chose to slow its bond buying rate.


Unemployment claims data in the U.S., meanwhile, shows Americans who filed new claims for unemployment benefits last week are declining amid growing Covid-19 vaccination efforts and stimulus packages.


While the U.S. economy is strengthening, the Fed sees that the risk of higher inflation diminishes. The statement was interpreted by a number of market players that it would take longer to raise interest rates. This makes the US dollar less attractive to investors.


The US dollar index, which measures the greenback against other currencies, fell 0.34% to an exchange rate of 90.985 as of 11.40 p.m.



On the other hand the Bank of England said it would slow its bond purchases and Britain's economic growth forecast this year was raised after a slump due to the pandemic at the same time stressed that it was not tightening monetary policy.


The pound was last down 0.08% against a weaker dollar at $ 1.3900.


The euro was up 0.47% against the dollar at $ 1.2061, and up 0.65% against the pound, at 86.88 pence per euro.


The Canadian dollar hit a three-and-a-half-year high, helped by rising oil prices and the Bank of Canada’s recent shift to better indicators.