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The US dollar trends up to the end of the year

20 September 2019

The US dollar trends up to the end of the year

The events of 20 September 2019 the city's delight, the ruble has stabilized in the market and have risen in price. Traffic associated with the fact that the price of the dollar dropped significantly, the reason is the trade and economic war between Russia and China, as well as a weakening of the dollar against such currencies as the Japanese yen, British pound, Swiss franc, etc.

 

Before, there was a meeting of top management of the Federal reserve, investors expected rate cut. However, there is another problem - nobody knows what will happen with the financial sector in the United States. Recall that the fed cut rates by 25 basis points, which is about 2% per annum.

 

Yesterday the dollar reached 64.1 rubles, but in the evening it started up and was fixed at the level 63,8 RUB With the Euro things are getting worse, if in the morning the price reached 70.9 RUB, then in the evening the figures dropped to 70.6 RUB market Movement is positive, moving from weakening to strengthening. Today, the dollar / ruble exchange rate is 64,22 rubles, and the Euro to rouble - RUB is 70.94

 

After the meeting, the views of 17 top managers of the fed are divided, pointing to the volatility and fragility of the U.S. economy, opinions were divided thus:

  • 7 people for an additional rate cut is still at 1.75% per annum;
  • 5 - for the need to stabilize rates and return it to previous levels;


Alas, no consensus. Most feared downward trend in GDP growth in the United States, which explains the reduction in the rate, however, others believe that the decrease in the interest rate makes no sense.

 

As explained by RT, the portfolio Manager QBF Denis Ikonnikov, in the leadership of the fed, there is no consensus about the Outlook for the U.S. economy. Thus, some representatives of the regulator feared the slowdown in GDP growth in the US and insist on further rate reduction, while others do not yet see the need.

 

Last year the fed raised rates four times, however, Donald Trump such a policy of the party did not like, after which Powell was forced to lower the rate and change of tactics. Interest rate in the US not dropped since 2008.