Yasser Al-Rawashdeh, head of the Middle East trade department at Saxo Bank, said in an interview with Al-Arabiya Rise of the dollar With the Federal Reserve’s continuing interest rate hike policy.
Al-Rawashdah stressed the need to change monetary policy in Japan, noting that interventions in support of the yen are “temporary” as they push it to a temporary rise and then to a fall.
He added that the ceiling for intervention by the Central Bank of Japan in support of the yen will be 151-152 per dollar.
The Japanese yen fell 0.2% against the dollar to 148.18 per dollar as traders continue to anticipate any further official intervention in support of the volatile currency.
Last month Japan spent a record $ 42.8 billion to strengthen the yen, through a series of unannounced purchases, after spending nearly $ 20 billion in September.
The head of Saxo Bank’s Middle East trade department indicated that pressure on the pound will continue pending the Bank of England’s decision to raise interest rates, which are expected to rise by 75 basis points.
The pound fell 0.5% against the dollar to $ 1.13325, but only lost 0.1% against the euro to 86.22 pence per euro.
The dollar rose on Thursday, supported by a sharp rise in U.S. Treasury yields after the Federal Reserve indicated interest rates could peak above current investors’ expectations, as the pound fell ahead of the policy meeting. of the Bank of England.
On Wednesday, the US Federal Reserve raised its benchmark interest rate by 75 basis points to a range of 3.75 to 4.0%, as expected, and Bank President Jerome Powell said the fight against inflation will require an increase in financial costs.
Powell’s comments dashed any hope that the Fed would soon switch to a less aggressive policy.
