Baku 21° C
Baku. 25 April. REPORT.AZ/ Dollar index, which shows the ratio of the US dollar to other leading currencies of the world, continues to grow in the world financial markets.
Analytical Group of Report informs, index is growing at a daily rate by 2.05%, which is a record level since November 2016.
Despite the opinion of a number of investors about the end of the dollar era, the US currency continues to appreciate and interest in it is growing. This is due to both economic and technical factors.
First of all, investors cannot remain indifferent to the difference between the annual interest rate of the bonds in US and other countries. Approximation of the interest rate of 10-year US Treasury notes to 3% leads to the rejection of securities of other countries and automatically raises US dollar.
The growth in demand for American money also provoked by inflation-oriented innovations in world's largest economy. The consumer price index in the US has increased recently. This formed the opinion among investors that the Federal Reserve will raise discount rate. If this happens, the dollar will inevitably rise in price.
On the other hand, this week central banks of Europe and Japan will announce their decisions on discount rates. Investors expect the rates to remain stable, as there is a drop in prices both in Europe and in Japan. This is a positive news for the US currency, as it makes dollar investments more profitable.
