The price of the dollar is declining globally following the decisions of the US Federal Reserve.

The price of the US dollar fell, on the night of Wednesday, March 17, 2021, due to the decrease in demand in global markets as a result of the fall in US bond yields following the decisions of the US Federal Reserve. It announced on Wednesday night, during which it kept interest rates suspended, announcing that it did not expect any hike until 2023.

The US dollar trading index, which measures the dollar against a weighted basket of six major currencies, fell 0.43% to 0.49% as the yield on 10-year US Treasuries fell by first time since its highest level in 13 months.

The Federal Open Market Committee announced that it would keep the benchmark interest rate unchanged in the range of 0% to 0.25% and confirmed that it would continue with its monthly purchases of $ 120 billion in bonds.

The Federal Reserve said in a statement that “inflation continues to fall below 2 percent. With the slowdown in the pace of the recovery, indicators of economic activity and employment have recently appeared, although the sectors most affected by the epidemic remain weak.

Federal Reserve Chairman Jerome Powell stated in the press conference held after announcing the Federal Reserve statement: “The gradual decline in inflation remains elusive because the economy has not yet achieved significant economic growth, and He emphasized that the decline in bond purchases will eventually show itself.

He said: “We will give an indication that we are on track to achieve significant growth, probably considering the gradual decline and I think what we have learned from the experience of the last ten years, is to communicate very cautiously, very clearly and from the beginning “.

According to the Federal Reserve statement and the president’s press conference, the dollar will go down, and technically the dollar during the last period was already weak due to its inability to overcome the 92 level, and the index will be exposed to more pressures to the light. high inflation, strong monetary easing, and huge stimulus packages entering the market, ultimately leading to a drop.

Regarding the price of the dollar in Egyptian banks, it is subject to the theory of supply and demand, with its effect on prices in global markets, and with the rise in the price of gold in Egypt and the world, this will be reflected in the price of the dollar, and the next few days will reveal the extent of the impact of global price changes in Egypt

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