The demand for the dollar has been dropping this Monday. It had been experiencing good growth for multiple weeks, and expectations were positive. However, the momentum seemed unsustainable, and the currency dropped. The US Dollar Index has been in the negative, so the best dollar exchange rate is low.
The recent Fed announcements are likely partly of the reason for this. Chairman Jerome Powell recently announced their measures for interest rates in the US. On Friday, he announced the Fed’s intentions to raise interest rates if necessary in the US. Many had been wondering before the meeting whether rates would stay the same or rise and were planning accordingly. The consistently high interest rates in the US for the past few weeks have affected the currency. The hike had originally sent the index into rather positive territory, the highest in many months. However, there has been a pushback against this sudden jump as markets opened on Monday. The positive trading in the stock index was an extra barrier to the dollar consolidating its gains from the best dollar rate on Friday.
Asian News Impact on The Best Dollar Exchange Rate
Information from Asia has shown positive sides for markets there. Retail sales went up 0.5% over July, higher than expectations, which sat at 0.3%. This helped in giving traders a positive mood for the Asian market and the Australian market along with it. Recent developments have thus buoyed the Australian dollar. This has boosted the AUD/USD, sending it over 0.64. The best dollar exchange rate remains low by comparison.
In the meantime, the European market has been reacting to the unpredictable nature of the USD. The EUR/USD has risen slightly after consistent downgrades. The equivalent of a 100 dollar figure would be roughly 92 euros. The weakness of the Dollar, in combination with higher European trade volumes, likely contributed to this. The European Central Bank has stated that low-interest rates will keep inflation in check.