After downgrading the credit rating in America, the dollar is falling apart
After downgrading the credit rating in America, the dollar is falling apart
8-2-2023
Information / Baghdad..
The dollar fell on Wednesday, after Fitch’s decision to downgrade the credit rating of the United States raised questions about the country’s financial outlook, but it got some support from a series of relatively strong economic data.
Fitch lowered the US rating to AA+ from AAA, in a move that sparked angry reactions from the White House and surprised investors, especially as it comes two months after reaching a solution to the debt ceiling crisis.
That pushed the dollar down against the euro’s rise to about $1.10. The single European currency rose in the latest trading by 0.11 percent to reach $ 1.0996, after earlier touching its highest level in the session at $ 1.1020.
The pound sterling rose 0.05 percent to $1.2782, while the US dollar index rose in the latest trading by 0.09 percent to 102.09 points, after falling significantly in the wake of Fitch’s decision.
“We don’t think Fitch’s decision is material. Certainly, we saw the market move a little bit this morning…but in the near term, I don’t think It will be a long-term driver.”
The dollar also got some support from economic data released on Tuesday, which showed that employment opportunities in the United States remained at levels consistent with tightening labor market conditions, even as they fell to the lowest level in more than two years in June.
The Japanese yen rose 0.1 percent at 143.21 per dollar, erasing some of its gains made earlier in the morning, Wednesday.
The Australian dollar rose 0.12 percent to $ 0.6621, recouping some of the losses it suffered after a sharp decline of 1.57 percent in the previous session, after the Reserve Bank of Australia kept interest rates unchanged on Tuesday.
The New Zealand dollar fell 0.23% to $0.6136, after data on Wednesday showed that the country’s unemployment rate hit a two-year high in the second quarter.
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