The US dollar is declining against other major currencies during Tuesday’s morning deals as investors’ risk appetite rebounds.
At the same time, the dollar continues to receive some support from expectations of further tightening of the monetary policy of the US Federal Reserve System (FRS) in the face of persistently high inflation, writes Trading Economics.
The ICE-calculated index showing the dynamics of the dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona) is losing 0.13%, the broader WSJ Dollar Index – 0.22%.
The euro/dollar pair is trading at $0.9862 by 8:47 am CST, compared to $0.9844 at the close of the market on Monday. Euro rises in price by 0.18%.
The rate of the American currency against the yen is reduced by 0.13% and amounts to 148.84 yen against 149.04 yen following the results of the previous session.
The pound sterling rose to $1.1384 from $1.1359 in previous trading.
Britain’s new Chancellor of the Exchequer, Jeremy Hunt, has abandoned much of the fiscal stimulus proposed by former British Treasury Secretary Quasi Kwarteng on 23 September.
“The most important goal for our country now is stability,” Hunt said on Monday, speaking before Parliament.
Hunt’s proposals are expected to save the British authorities £32bn.
In particular, the government will return to plans to increase the corporate tax rate from 19% to 25% from April 2023, and also abandon plans to reduce the tax on dividends, carry out wage reform, freeze alcohol duties and introduce a zero VAT rate. for foreign buyers, writes the Financial Times newspaper. In addition, the lowering of the base income tax rate to 19% from 20%, which was planned for April, will be postponed.
