Forex and Dollar Stable After Positive US Banks Quarterly

Forex and Dollar Stable After Positive US Banks Quarterly

TOKYO/LONDON (Reuters) – The dollar stabilized after positive results from US banks, boosting the possibility of the Federal Reserve taking a more dovish stance on interest rates.

Yesterday, Morgan Stanley announced higher than expected profits for the first quarter, following the positive trend of other major US banks that eased fears of a financial crisis after the failure of Silicon Valley Bank and Signature Bank last month.

The dollar index, which tracks the greenback against a basket of currencies, fell 0.14% to 101.82.

According to John Williams, President of the Federal Reserve Bank of New York, inflation remains at problematic levels and the US central bank will work to bring it down.

According to a Reuters poll, the Fed will raise the interest rate by 25 basis points in May and then hold it steady for the rest of 2023.

Across the Atlantic, higher-than-expected UK inflation data yesterday fueled bets for a Bank of England rate hike in May.

The pound is still moving slightly at $1.2442, not far from the 10-month high of $1.2545 it hit last Friday.

Against the dollar, the yen lost 0.08% to 134.82, after yesterday it crossed the 135 threshold for the first time.

(Translated by Luca Fratangelo, edited by Alicia B)

See also  Electric Vehicles: The US-Chinese Battery Recycling Challenge

Leave a Reply

Your email address will not be published. Required fields are marked *