Trump moves US monetary policy .. The dollar is affected by the expected benefit

The dollar stabilized during Friday’s trading, but it is heading to register a decrease of about 2% during August against the main currencies, amid increasing expectations for the Reduce the Federal Reserve (the US Central Bank) interest rates next month. This comes in conjunction with continued concerns about the independence of the central bank, in light of repeated political interventions of US President Donald Trump.
The euro recorded a stability at $ 1.1677, while the British pound decreased by 0.2% to $ 1.3474. It is expected that these two works will close the month at an increase of more than 2% against the dollar. As for the dollar against the Japanese yen, it settled at 146,975 yen. The dollar’s impact is due to President Trump’s efforts to exercise greater influence on monetary policy, including his attempts to dismiss Lisa Cook from the membership of the Central Bank Governors Council, which prompted Cook to file a lawsuit saying that Trump does not have the authority to dismiss it. This legal battle represents the latest chapter on Trump’s efforts to reshape the bank after his repeated criticism of its president, Jerome Powell, due to the failure to reduce interest rates. The market’s reaction to this battle is still limited, with slight sales of the dollar, while investors focus on the risk of reducing interest rates by the Federal Reserve. According to the CME “Vid Watch” tool, investors are currently expecting to reduce the interest by 86% in September, compared to 63% a month ago. Francesco Bessol, an expert of foreign currencies at (ing), said in a memorandum: “The risk of the dollar declining undoubtedly increased, while the markets are still reluctant to predict what the Federal Reserve Council will do and focus constantly on short -term developments Leaded to data. ”Investors are awaiting the issuance of the Personal Consumption Expenditure Prices for the US Central Bank’s inflation scale, later on Friday, because of its direct impact on the expectations of reducing interest rates. Local interest rates and stock market activity. On the other hand, the Indian rupee has registered its lowest level ever due to fears of the impact of high American customs duties on Indian imports.