Let us track the changes in the market. The euro is the biggest beneficiary of the dollar’s weakness. It fell back below $1.19 and stood flat at $1.1836.
Last week, short bets against the world’s dominant reserve currency had risen to their largest since 2011. Moreover, long bets on the euro were at a record high.
The Norwegian crown briefly weakened against the euro and the dollar, when it comes to other currencies. This happened after the country’s central bank said that the currency is now stronger than it assumed in its June report. Moreover, it held rates steady as widely forecasted.
Elsewhere, the United States Feds made the decision to cut the number of seven-day swap operations with major central banks to one tender per week from three starting from September 1st. This is because the conditions in the market have improved. Borrowing costs have dropped below policy rates, over the night.
The Dollar and Other Currencies
Marshal Gittler works at BDSwiss Group. He is head of investment there. For him, the move is not likely to have that much of an impact.
He said that he thinks it is more a demonstration of the policy’s success than it is a reason for the dollar’s move today.
The United States dollar jumped since Federal Reserve minutes were less dovish than some forecasted. After the euro surged, there were calls to make profits. The country’s crown weakened after Norway’s central bank left rates unchanged.
Last month’s United States Federal Reserve policy meeting was less dovish than expected. Thus, this prompted bears to buy into the heavily shorted currency. So, the United States dollar consolidated gains on Thursday.
The dollar index tracks the greenback’s value against a basket of currencies. Thus, the United States dollar climbed 1% above the two-year low, at 92.12 hits on Tuesday. Therefore, this cemented its gains at 93.01 in late morning London trading.
This is the current news of the market.