US dollar struggles with banking crisis, slowdown, debt ceiling concerns
ALBWABA – As of May 17, the U.S. dollar rose by 0.282 points on Wednesday, to 102.987 points, from 102.705 points on May 12, according to data provided by Tradingview.com.
The U.S. dollar is reportedly hovering just around the eight-week high of 103.115, on March 24.
Overall, interest rate hikes in the U.S. drove Treasury bond yields up, raising demand for the U.S. dollar.
The Federal Reserve Board, the Fed, increased interest rates by almost five whole points in just a little over a year, in an effort to combat soaring inflation in the US.
By raising rates, the Fed increased bond yields and drives demand on treasury-issued securities.
As a result, the U.S. dollar rose 1.4 percent in the week ending May 12, according to UBS Wealth Management USA. But has fallen 2.5 percent so far in 2023, and 1.9 percent on the year ending May 12, a Forbes analysis highlighted.
As of May 17, the US dollar rose by 0.282 points, to 102.987 points, from 102.705 points on May 12, as indicated by data provided through Tradingview.com.
Currently, the US dollar is retreating against the Euro, trading at 1.0825, according to Google Finance. Having traded at 1.0860 on May 15, as reported by Investing.com.
“So far in 2023, inflation and interest rate expectations have whipsawed back and forth, and the dollar has responded largely in kind,” Forbes explained.
In early March, the dollar hit its highest level since November, on March 8, hitting 105.657 points.
Since then, concerns among investors worldwide grew on the stability of the US banking sector, with the debt ceiling crisis weighing on the economy.
