Today’s Dollar Exchange Rate Prices: March 5, 2024 – Last Minute Economy Update
The Dollar gains value against the Turkish Lira, Euro also increases
The Dollar started the new day with a gain in value against the Turkish Lira, trading at 31.65 with a 0.1 percent increase. Meanwhile, the Euro is being sold at 34.40 with a 0.2 percent increase, and the British Pound is sold at 40.0610 with a decrease of 0.1 percent.
The Dollar index, which saw a 0.1 percent decrease yesterday, is currently at 103.9, marking a 0.1 percent increase from its previous closing.
Analysts are closely monitoring the uncertainties surrounding the US Federal Reserve (Fed) and when they will start reducing interest rates. This uncertainty is making asset pricing challenging for investors.
If the US employment data to be announced this week shows a softening in the country’s workforce, analysts believe that expectations for the Fed to start interest rate cuts in the first half of the year may increase. All eyes are on the presentation that Fed Chairman Jerome Powell will make in Congress tomorrow.
There has been a signal for an interest rate cut from Fed official Atlanta Fed President Raphael Bostic, who stated that he needs to gain more confidence in the decline of inflation before lowering the policy interest rate. He expects a two-quarter point interest rate cut to take place this year.
Money markets are certain that the Fed will keep the interest rate constant at the meeting scheduled for March 20. However, the probability of the bank’s first interest rate cut is priced at 22 percent in May and 65 percent in June.
Analysts are keeping an eye on the real effective exchange rate in the country, the service sector, and composite PMI globally, as well as the Producer Price Index (PPI) in the Eurozone, and factory orders data in the USA. From a technical standpoint, the resistance levels for the dollar index are at 105 and 106, while the support levels are at 103 and 102. Investors are advised to pay close attention to these levels in the coming days.
