Manat to strengthen before the Fed's decision to raise key rate - FORECAST

Baku. 19 March. REPORT.AZ/ Strengthening of manat is predicted until the Federal Reserve (Fed) to raise the key rate.

Report informs, on Fed's meeting on March 16, the signals received to raise the key rate in April and June. Following statements, the positive sentiment was observed in the global financial markets, US-dollar also fell to almost all world currencies.

Research Group of Report News Agency predicts that the positive trends in global financial markets will continue until the Fed's decision to raise the key rate. In the same period is forecasted the strengthening of the AZN/USD on the background of oil price increases. Notably, after the course on March 11, the maximum level of 1,6456 AZN/USD AZN began to strengthen, and today, on March 19, the rate is 1,5971 AZN/USD. Thus, over the past six days manat strengthened by 2.95%.

Report analysts believe that the rate of manat against the US dollar will drop to the range of 1,45-1,50, after which the rate will depend on the dynamics of changes in the global financial markets due to the Fed's key rate increase. Against the background of strengthening the dollar due to changes in the Fed's monetary policy, on the global financial markets will form a negative trend once again. In this case, it is possible that by the end of the year manat exchange rate will weaken and will increase to 1,70-1,75 AZN/USD.