The US dollar has gained 3% against a basket of other currencies since the start of February as economic data suggests that the US economy remains strong, as the US dollar has recovered from a 10-month low as investors increase their projections for US interest rates after seeing signs of stubborn inflation and strong economic activity. This comes after the currency had fallen more than 11% since October. Investors have raised their forecasts for US interest rates after seeing signs of stubborn inflation and strong economic activity. The US economy added more than half a million jobs in January, and inflation fell to 6.4%, a smaller decrease than expected. While some investors doubt the dollar's rally has much longer to run, the currency is expected to continue to rise this quarter. This increase in the dollar is due to a flurry of economic data that suggested the US economy is still healthy.
https://www.ft.com/content/8f94ecfc-a2f9-4f24-aabf-d700cee981fb
3 comments:
Good to see that the US dollar is doing well. I think with the major increase in employment across the country, it is no surprise that inflation did not reduce as much as investors predicted. The more people with jobs means that more people are spending, and although inflation is still high, there is still great opportunity for economic growth.
It is very welcoming to see the US Dollar has gained 3% since the start of February. It will be interesting to see how it reacts in upcoming months.
It is good to see that the dollar is regaining its strength back. It will be interesting to see how this will affect future interest rates and hopefully bring down inflation.
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