Dollar began to fall rapidly

Baku. 14 June. REPORT.AZ/ Inflation figures announced in United States today has led to sharp decline in dollar rate.

Report informs, in monthly comparison index of consumer prices rose by 0.1% in May. Analysts, in turn expected increase of 0.2%.In annual comparison this figre rose by 1.9% despite forecasted 1.7%.That is, for more than 3 months inflation in the United States can’t exceed 2%. Along with this index of retail salesdecreased by 0.3% in monthly comparison. However, the projected increase in sales was 0.2%.

As a result, dollar began to decline sharply in global foreign exchange market.So now the in main currency pair (EUR-USD) exchange rate of the single European currency increased by 0.5% and reached 1.1265 USD / EUR.

Even if today Fed increases interest rate the dollar will probably continue to decline. The main currency pairs in the short term can appreciate to 1.1330 USD / EUR, while in average period up to 1.15 USD / EUR. However, there is no doubt that in the long run the dollar become stronger.

For this, interest rate hike above 2% inevitable in US.