The prospect of loose and sustained monetary policy from the US Federal Reserve weighed on the dollar on Wednesday. The greenback fell against all major currencies. In return, the euro appreciated by half a US cent to 1.1827 dollars and thus recovered from its losses of the day before. In his pre-published speech at a hearing before the US Congress, Fed Chairman Jerome Powell said the labor market was “far” from the level to which his house would reduce monetary support to the economy. He also said the pressure on prices would ease “in the coming months”. Powell’s statements were in line with market expectations, brokers said. The day before, a surprisingly strong inflation spurt in the United States had given the dollar a boost.
There have been gains in the New Zealand currency, the so-called Kiwi dollar. Previously, the country’s central bank surprisingly announced an end to buying bonds to support the economy this month. In the forex market, the move is seen as an indication that there could be a rate hike in New Zealand this year. In the oil market, a report by the Reuters news agency on an agreement in the dispute over production volumes caused a stir. Thus, Saudi Arabia and the United Arab Emirates have settled their dispute and paved the way for an extension of the OPEC + production quota contract currently in progress until the end of 2022. The prospect of an early easing of the brake on production pushed the price of oil deeper the red. At the same time, market players hope the deal will prevent a collapse of Opec + and a possible price war between producing countries. The North Sea variety of Brent crude oil fell 1.7% to $ 75.16 per barrel (159 liters).
© SZ of 07/15/2021 / SZ, Reuters, dpa