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Friday, December 8, 2023
WorldEuropeThe dollar is falling amid fears of a global banking crisis

The dollar is falling amid fears of a global banking crisis

The exchange rate of the dollar fell today in Asian trading after banks moved to relieve pressure on the financial system in global markets, which led to calming other major currencies that fell earlier in the week in the wake of the bankruptcy of some US banks.

Yesterday, Thursday, large US banks pumped $30 billion in deposits into First Republic Bank to save it after it was caught up in the crisis resulting from the collapse of two other medium-sized US banks last week. The Australian dollar rose 0.4 percent to $0.6684, and its New Zealand counterpart rose 0.3 percent to $0.62145.

On the other hand, the pound sterling rose 0.15 percent to $ 1.2128, and the Swiss franc rose 0.1 percent, after it fell earlier in the week by the largest amount in one day against the dollar since 2015. The Japanese yen remained high, and recorded in the latest transactions an increase of about 0.3 percent. to 133.30 per dollar.

Despite the bank’s share decline "Credit Suisse" The Swiss rose by 30 percent, and what raised concerns about the strength of European banks, the European Central Bank went ahead with raising the interest rate by 50 basis points yesterday (Thursday), and there was almost no reaction from the euro to the decision, but it was able to achieve gains of 0.3 percent yesterday / Thursday / and recorded an increase in the latest transactions by 0.14 percent, to 1.0625 dollars.

The market turmoil prompted dealers to flock to the yen, which is usually considered a safer bet in times of turmoil, amid fears that the recent pressures unfolding among banks in the United States and Europe are just the first phase of a widespread crisis. Investors are awaiting the monetary policy meeting of the Federal Reserve (the US central bank) that will be held next week, pinning their hopes that the bank will slow down the campaign of sharply raising interest rates in an attempt to relieve pressure on the financial sector.

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Arab Desk
Arab Desk
The Eastern Herald’s Arab Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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