US dollar could rise in coming days - ANALYTICS

Baku. 9 June. REPORT.AZ/ The high probability of an increase in the key rate by the US Federal Reserve System (FRS) at the June 13-14 meeting may lead to a rise in the price of US dollar in the coming days.

Analytical Group of Report believes, despite weak indicators of the US economy, next week it is possible to raise the key rate by 25 percentage points.

There are other reasons for the appreciation of the dollar, which in the past few months has fallen markedly due to the non-fulfillment of pre-election promises by US President Donald Trump and political motives. Yesterday, the US Congress abolished financial restrictions imposed by the Dodd-Frank Act. These measures should help in expanding the volume of lending.

Notably, Dodd-Frank law was proposed by the Obama administration to reduce the risks of the financial system. After its adoption, the capital adequacy ratio of the first level of American banks increased from 8-9% to 12-14%. Trump viewed this law as a symbol of "poverty" of US.

Thus, in the coming days the exchange rate of the main currency pair may reach 1.1 USD / EUR. The growth of this indicator up to 1.15 USD / EUR not excluded, and in 2018 the dollar and euro can reach parity.