Currency Market Volatility : On Wednesday, Fitch lowered the US government’s credit rating. This shocked the market. The currency is benefiting from positive economic news. Investors were surprised when Fitch downgraded the White House’s credit rating from AAA to AA+. The debt cap problem has been fixed, relieving people’s worries. The dollar’s value decreased immediately due to this. Due to this, the euro’s value increased by 0.012%, allowing for a one-to-one exchange rate with the dollar.
After Fitch’s statement, global currency values plummeted. The USDI ended the day at 102.07, up 0.07%. A currency expert at NAB named Rodrigo Catril thought Fitch’s decision wouldn’t matter in the long run as the market reacted little. The market’s lack of reaction influenced Catril’s opinion.
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The dollar’s value rose due to improving economic signs. Despite record-low job numbers, finding work in the US remains challenging. Despite a decrease in the workforce, business sales have increased in the past three years. Despite other data, the US manufacturing industry remains stable at lower levels. For a long time, this steadiness has been observed. Despite increased demand for fresh veggies, this occurred. Despite the forex market‘s volatility, the Japanese yen has remained steady at 142.67 cents for some time. Signs suggest it may soon stop falling. The market closely watched the Bank of Japan’s interest rate cut.
After losing 0.36% of its value, the Australian dollar is worth $0.65895. On June 1, it wasn’t this low, and it hasn’t been since. The Australian dollar fell after the RBA kept interest rates unchanged and suggested no further rate hikes. This choice was made due to the RBA.
Despite the US dollar’s 0.61% decrease, the New Zealand dollar also decreased by the same amount. Before Q2 began, the jobless rate hit its highest point ever. The Reserve Bank of New Zealand needs more work to prevent interest rates from rising excessively. It’s not what it used to be. Kelly Eckhold, Westpac’s chief economist, said RBNZ may raise interest rates in November. The bank’s interest rate choice was unaffected by new information