Source: Wall Street See

Due to the Federal Reserve consistently maintaining a high interest rate policy, the US dollar has continued to strengthen and has risen for five consecutive weeks, reaching a new high for the year. In terms of product structure, the operating income of 10-30 billion yuan products is 401/1288/60 million yuan respectively.

The Bloomberg Dollar Spot Index rose 0.2% on Thursday, closing at 1267.71 points, the highest level since early November last year. Although the index is still below the intraday high of 1271.06 points set on April 19, 2024, it is still higher than the level at the beginning of the year. This indicates that the US dollar still has continuous attractiveness in a high interest rate environment.

Federal Reserve officials have stated that they will not begin to lower borrowing costs until they see more evidence of inflation weakening. This policy stance is in sharp contrast to the Bank of Canada, the European Central Bank, and the Swiss National Bank, all of which have already begun to ease their policies.

In particular, the Swiss National Bank lowered its benchmark interest rate for the second consecutive meeting on Thursday, causing the Swiss franc to weaken. The current US dollar against the Swiss franc has risen to 0.892.

The Japanese yen has fallen against the US dollar for the sixth consecutive trading day, reaching the largest decline in three months. At the close of trading on Thursday, the exchange rate of the Japanese yen against the US dollar was below 159, the lowest closing level since April 1990. The US Treasury Department has added Japan to its list of currency manipulators.

Bloomberg warned that the exchange rate of the Japanese yen against the US dollar could still reach this year's intraday low of 160.17 yen, increasing the risk that Japanese officials may intervene again to support the currency.

Editor / jayden