Forecast: USD will decline rapidly

Baku. 30 March. REPORT.AZ/ Chair of the Board of Governors of the Federal Reserve System Janet Yellen in her speech on March 29 warned that discount rate will ibe ncreased "very carefully". 

Report informs this statement led to the weakening of the dollar. Thus, the dollar fell by 1.2% against the euro and reached 1.1303.Note that in last week Federal Reserve officials said the possibility of increase of interest rate after the one of the meetings to be held in April or June. 

At yesterday's session, investors expected Janet Yellen to continue statements in this direction, though the head of the Federal Reserve showed a more cautious position. She advised to pay attention to the low inflation in US, China's economic uncertainty, the global economic conjuncture and the mixed economic indicators released in the US.Besides Yellen stressed that because of decline in economic activity in the labor market the cyclical depression could arise.

Analytical group of REPORT said that the dollar is expected to weaken rapidly if Labor Market Activity Indicatorsto be released in the US on Friday will be close to or lower than forecasts.USD/EUR exchange rate is expected to rise to the level of 1,20-1,22 in next 2-3 months.In this case, AZN / USD rate will be 1,35-1,40, while the price of oil to rise to 50 USD / barrel.