SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

The dollar is pressured ahead of the Fed's interest rate decision

The dollar is following the market interest rates in the USA downwards ahead of Wednesday's interest rate decision from the USA. The American currency now costs under 10.17 kronor and is thus approaching its lowest level of the year again.

» Updated: 17 September 2024, 12:36

» Published: 16 September 2024

The dollar is pressured ahead of the Fed's interest rate decision
Photo: Shizuo Kambayashi AP/TT

As late as the end of July, the dollar cost 10.83 kronor, and when the inflation shock was at its worst, the same dollar cost as much as 11.36 kronor.

The interest rate on the US 10-year government bond is simultaneously down to 3.65 percent, one of the lowest levels since May 2023.

The US central bank, the Federal Reserve (Fed), is expected to lower its interest rate on Wednesday after inflation in the US has fallen and a series of unexpectedly weak reports from the US labor market have been released.

Most analysts expect a decrease of 0.25 percentage points. However, many investors, economists at the major bank JP Morgan Chase & Co, and former Fed member William Dudley expect a so-called double decrease of 0.50 percentage points, according to Bloomberg.

The decrease would be the Fed's first in four years. Ahead of the announcement, the Fed's interest rate stands at 5.25-5.50 percent, the highest interest rate level since 2001.

The Fed – like many other central banks – made an unusually rapid series of interest rate hikes in the wake of the inflation shock, with a final hike in July 2023.

This week, interest rate decisions are also expected from, among others, the UK, Japan, and Norway, and next week – on Wednesday, September 25 – the Swedish Central Bank is expected to make what will be its third decrease of the year.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Took a tough stance on crypto companies - resigns
1 MIN READ

Took a tough stance on crypto companies - resigns

Ingvar Carlsson on PG: "A very loyal friend"
2 MIN READ

Ingvar Carlsson on PG: "A very loyal friend"

No Wage Guarantee in American Process
1 MIN READ

No Wage Guarantee in American Process

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

Unstable US stock market ends on a plus
1 MIN READ

Unstable US stock market ends on a plus

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Reconstruction in the USA to save Northvolt
3 MIN READ

Reconstruction in the USA to save Northvolt

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
3 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

New Report Boost for AI Giant Nvidia's Share
2 MIN READ

New Report Boost for AI Giant Nvidia's Share

Stockholm Stock Exchange Turned Upwards
1 MIN READ

Stockholm Stock Exchange Turned Upwards

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic