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Dollar maintains gains after Federal comments

Dollar maintains gains after Federal comments

The US dollar continued to rise during today's session to maintain its gains after the significant deterioration in the federal currency during the past week, while the comments of a member of the US Federal Reserve increased expectations of continued stimulus from the bank.

The dollar index, which measures the performance of the federal currency against a basket of six major currencies, rose during today's trading, and reached its highest level at 92.95, after opening today's trading at the level of 92.71, and it had recorded a low of 92.59.

Federal Reserve Member Mary Daly said that the current monetary policy of the Fed is appropriate to the current conditions, and that the bank can adapt to the changes in the economy.

She indicated that the announcement of the Corona vaccine is a positive thing and helped optimism in the markets, but the priority remains in dealing with the numbers of infections that continue to increase, which will push the Federal Reserve to continue providing support to citizens, especially as expectations indicate that the pace of the US economic recovery may be weak, which shows the importance of continued financial support and financial aid.

Mary also affirmed that the Federal Reserve is ready to take more measures to support the economy, which indicates the continued stimulus by the Fed, especially with the market looking for a stimulus package by the US government that has been postponed until the end of the US presidential elections.

The US dollar witnessed a significant decline during the past week after the Democratic candidate, Joe Biden, took the lead in the US presidential elections, due to expectations that Biden’s policy will work to remove tension with China and will look for large fiscal stimulus.

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