Dollar Rises After Jerome Powell Statements - Economist

US currency "Dollar" received support from a wave of risk aversion on June 23, as statements in support of monetary tightening from global central banks, including the US Federal Reserve, raised fears of a further contraction of the economy.

In the same context, the pound sterling struggled to maintain the gains made thanks to the Bank of England's decision yesterday, Thursday, when it raised the interest rate by 50 basis points, in a move that exceeded expectations, to confront persistent inflation. At the same time, dealers in Britain are concerned about the recession.

Analysts believe that high-interest rates support currencies. Still, the risk that it will lead to an economic downturn prompted some investors to search for assets that represent safe havens such as the dollar, but at the end of the session, the pound sterling fell to 1.2740 dollars.

While the Turkish lira fell to a record low of 25.589 against the dollar, after the Turkish Central Bank raised the interest rate by 650 basis points to 15%, which came below expectations.

The US dollar rose broadly and settled near a more than seven-month high against the Japanese yen, printing at 142.90, as the yen came under fresh pressure as the Bank of Japan maintained a loose monetary policy.

As for the euro, it fell by 0.04%, reaching $1.0950, while the US currency index rose 0.05% against a basket of six major currencies, to 102.44.

In the same context, US Federal Reserve Chairman Jerome Powell said that the US central bank will move interest rates again, albeit at a cautious pace during the current year.