6.9 C
New York
Sunday, March 26, 2023

The US dollar strengthens against the euro and is stable against the yen

The US dollar strengthens against the euro in trading on Monday, is stable against the yen.

Traders assess the statements of the US Treasury Secretary Janet Yellen and await the May data on the dynamics of consumer prices in the country, which the Labor Department will publish on Thursday.

Yellen said in an interview with Bloomberg on Sunday that US President Joe Biden, in her opinion, should seek the implementation of his proposed programs to support the economy totaling $ 4 trillion, even if this would increase inflationary pressures and raise interest rates in the country.

“If interest rates rise slightly, it will be a plus both from the point of view of society and from the point of view of the Federal Reserve System (FRS),” Yellen said.

American experts differ in their forecasts regarding the future dynamics of inflation in the United States. A number of economists, including Yellen, believe that the rise in inflationary pressures is caused by the effects of the pandemic and is temporary.

Others fear that the massive stimulus proposed by Biden will create sustained inflationary pressures over the long term.

According to Yellen, Biden’s programs will require an increase in government spending by about $ 400 billion a year, and this is not enough to trigger a long-term rise in inflation.

The consumer price spike that could result from the stimulus program will come to naught next year, she said.

The consensus forecast of experts surveyed by Trading Economics envisages acceleration of inflation in the US in May to 4.7%.

In April, consumer prices rose 4.2%, at the fastest rate in 12 years.

As of 9:36 Moscow time, the euro rate against the US dollar fell by 0.07% – to $ 1.2158 compared to $ 1.2167 at the close of the previous session. The dollar / yen pair is trading at 109.49 yen against 109.52 yen the day before.

The euro in the yen fell by 0.08% – to 133.11 yen against 133.21 yen at the close on Friday.

The index calculated by ICE, which tracks the dynamics of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), adds 0.1% during trading, the broader WSJ Dollar Index is stable.

Latest Posts

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.