Baku 12° C
Baku. 30 April. REPORT.AZ/ Last Friday, the US-dollar rate demonstrated the highest growth in the last six months.
Analytical Group of Report informs, in the end, the American currency up 1.5% during the week. Dollar index, which sets its exchange rate against other leading world currencies, rose by 0.3% to 91.9.
This is due to the fact that the European Central Bank (ECB) kept its rate stable last week and also US Treasury Notes rates exceeded the psychological limit (3% per annum).
The current market trends show that funds previously invested in fast-growing and self-restoring economies, which promised higher interest rates, are now being directed to the US economy. Finally, demand for the dollar in the currency market surpasses the demand for other currencies. On the other hand, the news that the US Federal Reserve System (Fed) would raise rates this year increasing interest in US dollar several times and it becomes stronger.
Interestingly, the value of commodities related to the exchange rate of US-dollar is rising. For example, at present, the price of oil in the world market is at its highest level since 2014. Rise in the price of "black gold" simultaneously with US-dollar can have a negative impact on the economies of oil importing countries.
MSCI index that represents stock price of 24 large and medium-sized enterprises in developing countries including China, South Korea, Taiwan and Brazil, fell 1.3% last week. This shows that the stronger US economy has a negative impact on the economies of other countries.
