November 26, 2021

US Dollar Back Weak? This Is What Investors Need To Know

The US dollar reportedly depreciated against a basket of major currencies on Thursday with a decline from a 16 -month high. This gives an indication of the first daily loss in a period of 5 days due to profit taking in the investor.

The US dollar index was down 0.2% to a trading level of 96.65 after opening at 96.80 points, and hitting a high of 96.81 points. Yesterday, the index fell 0.4%, after a fourth consecutive daily rise following the takers to a 16-month peak.

The U.S. Department of Labor revealed that the number of initial jobless claims fell to its lowest level since 1969. Minutes of the Federal Reserve meeting showed the banker was open to accelerating a reduction in bond -buying programs if inflation continued to rise and at the same time accelerate interest rate hikes.

Federal Reserve Bank of San Francisco president Mary Daly said in one of the interviews that she would be open to speeding up measures to reduce the Fed’s bond -buying program.

On the other hand the Canadian dollar did not change much against the US dollar as oil prices declined and domestic data showed that payrolls rose in September. On Tuesday, it hit its weakest level in nearly eight weeks at 1.2744, weighed down by recent volatility in oil prices and speculation that the Federal Reserve will accelerate the easing of its bond-buying program.

The market continues to focus on any important data released as an early indication to make preparations.