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    Euro exchange rate may fall to 0.98 USD soon

    Statements by head of Federal Reserve strengthened dollar slightly

    Baku. 18 November. REPORT.AZ/ Yesterday, November 17, after the statement made by head of the US Federal Reserve System (FRS) Janet Yellen at US Congress dollar strengthened in international currency markets.

    Report informs citing the Bloomberg, Janet Yellen signaled the U.S. central bank is close to lifting interest rates as the economy continues to create jobs at a healthy clip and inflation inches higher.

    A rate hike “could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the committee’s objectives,” Yellen said in the text of testimony she is scheduled to deliver Thursday in Washington before Congress’s Joint Economic Committee.

    Yellen, who made no mention of the prospective policies of the incoming administration of President-elect Donald Trump, reiterated the expectation of Fed officials that future rate increases will be “gradual.” Bond prices have fallen and stocks have risen as investors anticipate that Trump’s proposals to cut taxes and boost infrastructure and defense spending will lead to faster inflation and stronger growth

    J. Yellen said indefinite period will continue in US economy for a long time and Fed will monitor carefully the decisions of Congress. FRS head said she supported Fed's decision on a gradual rise in interest rates on November and glad that US has strong, healthy and safe financial system. J. Yellen said GDP weight could increase and legislative bodies should give more thought to increasing productivity.

    After the statements main currency pair USD / EUR exchange rate fell to a level of 1.05. Thus the dollar strengthened by 3.6% in November, compared with euro. Currently the USD / EUR exchange rate is at 1.0595 level.

    Analytical Group of Report believes, euro rate will soon fall to 0,98 USD/EUR level.In the long run, the exchange rate expected to drop to 0.80 USD / EUR level.In addition, the interest rate in the US is expected to increase more rapidly in 2017.

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