The US dollar has been trailing behind this Thursday so far, with the buying dollar rate dropping. The US Dollar Index has dropped down to 105.5. This appears to be an ongoing trend, with the previous 6 days also showing negative growth. Therefore, investors are keen to see what the economic data from September will indicate. The CPI and Initial Jobless Claims will come out today, and will likely have implications for the US currency.
Similarly, the events and data from Europe will also likely have an impact. The ECB will release the records of the events at their policy meeting for September. To give another idea of the best dollar exchange rate, the EUR/USD rate stands at $1.06.
The US dollar has been suffering thanks to growing uncertainty in the worldwide economy. The growing financial risks have caused traders to shy away from making risky investments. This has meant that the dollar’s rivals have outcompeted it for now. Those wanting to buy dollars online may have to wait for a while.
There is positive news, however, which could be a boon for the dollar. Stock market indices for the US have been on the up. Meanwhile, 10-year Treasury bond yields have dropped below the 4.6% level.
US Fed policy
The main reason for the downward trend of the buying dollar rate, however, may be US government policy. The Fed seems to have finally decided to slow down with its interest rate hikes. It seems they will take a pause for now and many even think that no hike will come in the next few months. Fed officials have made comments that have led investors to speculate a dovish attitude. Low interest rates therefore have led to the lowering of the dollar. This is just as well, as the dollar has been profiting off of rate hikes for a while now. This may in fact be a corrective move for the US currency, and it has already triggered the lowering of bond yields.
