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Foreign exchange market: The dollar strengthens in a worried market

21/07/2021
Categories: Economy/Forex

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The dollar is benefiting from the rebound in equity markets. It rose on Tuesday against most major currencies, supported by the rebound on Wall Street after a sharp decline on Monday.

Around 6:45 p.m. GMT, the dollar gained 0.14% against the euro, to 1.1783 dollars for one euro, close to its highest since the beginning of April. The greenback also appreciated against the pound sterling, reaching levels not seen since the beginning of January, at 1.3629 dollars for one pound, as well as against the yen. In recent days, several analysts have seen in the rebound of the dollar, a time forsaken due to the maintenance of an accommodating speech by the American central bank (Fed), the illustration of a flight towards safe havens, against a backdrop of resurgence of the coronavirus. The dollar was also helped by the prospect of the meeting of the Governing Council of the European Central Bank (ECB) on Thursday, whose analysts expect a moderate speech. The maintenance of an accommodative monetary policy by the ECB dissuades the prospect of an increase in interest rates and does not support the single currency.

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