The price of the dollar has reportedly eased in the latest forex trading session. The forex data for the Friday session has shown that the price of the dollar has reportedly eased.
This means that price of the dollar declined in the Friday trading session. Still, the price of the dollar has continued gaining strong momentum throughout the month of November.
As for the recent week, it has proven to be the largest gaining week in a month for the US dollar.
In general, the value of the dollar has continued surging because of the reiteration of the interest rates by the US Feds.
The US Feds have Reiterated Interest Rates
As the US Feds shared the inflation rate results for the month of October, it was thought that the interest rates would be lowered in near future.
As the investors were under the impression that the interest rates would lower, they stopped investing in the dollar.
This reportedly pulled the trading price of the dollar in recent trading sessions. However, the overall performance of the dollar was positive versus the recent performance of the dollar.
However, the Feds spent no time in reiterating to the traders their stance on the interest rate hikes. According to the Feds, they have no plans of going back on their policy of interest hikes.
The Feds have made it clear that despite the inflation rates going down, they are not going to go easy on the rate hikes. This is because they want to ensure that the inflation concerns are not there at all.
Therefore, will not go easy on the interest rate hikes and they will definitely not pause the interest rate hikes until the inflation matter is resolved.
Their focus is to bring the economy back to its pre-pandemic state. When that happens, only then they will go ahead and lower the interest rate hikes or bring the interest rates back to the old level.
Dollar Price is to Go Up
As the Feds have now reiterated to the investors, the investments in the dollar would surge again. Following their announcement, the value of the dollar is to rise significantly.
This will be a positive sign for the US dollar and the month of November would be promising for the dollar as well.
Coming back to the dollar price action in the Friday trading session, the price of the euro and pound gained 0.1% and 0.3% against the dollar.
The price of the Australian dollar has also surged against the US dollar by 0.3%. The value of the New Zealand dollar has surged 0.6% against the US dollar as well.