Euro rate reaches 30-month maximum

Baku. 27 July. REPORT.AZ/ The USD rate  has declined in comparison with its main rival Euro to the minimum level of the last 30 months and reached 1,1777 USD/EUR.

Report informs, the reason of this is that Fed did not increase the discount rate and give the concrete dates of reducing its balance at the recent meeting.

Fed's next meeting will be held on September 19-20. Important statements are likely to be made regarding the monetary tightening at the summit of the heads of the world central banks to be held in the U.S. Jackson Hole resort city on August 24-26.

The analytical group of Report predicts the growth of USD since early August: "However, the growth is expected to be short-term. Taking into account that the devaluation of USD positively impacts the U.S. economy, it is forecast that such a situation will continue for a while and the rate will fluctuate in the range of 1,15-1,20 USD/EUR. Since the first half of 2018, USD is expected to strengthen along with the strengthening of the U.S. economy and the inflation rate nearing 2%.

"Since next year, it is predicted that Fed will increase the discount rate and reduce its balance. Fed is expected to raise the discount rate to 3-3,5% by the middle of 2019", Report analysts note.