Written by Anourji and Lucy Ritano
LONDON (Reuters) -The dollar rose on Thursday, when the threat was broader in the Middle East, waving on the market, while a group of decisions in Europe highlighted the difficulty of confronting central bankers in dealing with increased uncertainty.
The growing geopolitical tensions quickly strengthened the dollar, which has recently regained its security.
Iran and Israel carried out other air attacks on Thursday, as the conflict entered its seventh day. Fears have also grown about the participation of the United States, as President Donald Trump kept the world to guess whether the United States would join Israel’s bombing of Iranian nuclear sites.
The Federal Reserve left fixed rates on Wednesday. The Bank of England also left unchanged prices on Thursday, noting that global inception and continuous inflation as fears of economic expectations. The pound decreased at the beginning, but later he regained most of these losses.
Meanwhile, the Swiss franc was stronger against the dollar after the expected rate of the Swiss National Bank.
But the surprise came from Norges, which threw a 25 -bit interest rate reduction, while the markets expected that the Norwegian Central Bank would retain.
The dollar and the euro rose by 1 % against the Norwegian crown. The crown is one of the main higher currencies against the dollar this year, an increase of about 11 %.
Meanwhile, the euro decreased by 0.1 % to $ 1.1473. The dollar rose 0.2 % against the yen to 145.56.
The dollar index, which measures the currency against six others, was flat at 98.9, and was appointed to achieve about 0.8 % per week, and it is the strongest weekly performance since late February.
The fact that the fact that geopolitical risks and high oil prices were not “the risks of the United States”, unlike the risks of the US government from Trump’s tax reduction plans or its definition policies, the dollar can once again take over as a safe haven.
“The dollar is still in a place more suitable than energy -based alternatives to energy (such as the euro) in this environment,” he said.
The American markets were closed on Thursday to spend the Federal Juntenth holiday, which may mean liquidity less.
Federal Reserve Standing Bat
In a widely expected step, the Federal Reserve kept the fixed rates, as policy makers indicate that they still expect to reduce prices by half a percentage this year, although all of them did not agree on price cuts.
Federal Reserve Chairman Jerome Powell said that the inflation of the price of goods will get the summer, as Trump’s tariff begins to influence consumers.
Powell said at a press conference on Wednesday: “In the end, the cost of the customs tariff must be paid, and some of them will fall on the final consumer,” Powell said at a press conference on Wednesday. “We know this because this is what companies say. This is what the data says from the past.”
Comments from Powell confirm the challenge facing policy makers while moving in cases of uncertainty from customs tariffs and geopolitical risks, leaving the markets concerned about the interest rate path in the United States.
However, traders are seeking at least in price cuts this year although analysts are not sure of the starting point.
“After having kept interest rates unchanged for a period of six months, President Powell seemed to indicate that the federal reserve could remain temporary suspended during the summer, which makes October in the” direct “meeting the next. We still expect the policy to remain suspended at the end of the year,” said economists at BNP Paribas.
Trump, who was a audio critic of the Federal Reserve Chair for not lowering prices more quickly, on social media on Thursday that US prices should be “less than 2.5 points”.
(Participated in additional reports from Amanda Cooper in London; edited by Francis Kerry and Bernadet Boom)
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