{"id":606912,"date":"2023-09-24T00:00:00","date_gmt":"2023-09-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/24\/greenback-hits-six-month-high-as-fed-warns-rates-will-remain-higher-for-longer\/"},"modified":"2023-09-24T00:00:00","modified_gmt":"2023-09-24T00:00:00","slug":"greenback-hits-six-month-high-as-fed-warns-rates-will-remain-higher-for-longer","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/24\/greenback-hits-six-month-high-as-fed-warns-rates-will-remain-higher-for-longer\/","title":{"rendered":"Greenback hits six-month high as Fed warns rates will remain higher for longer"},"content":{"rendered":"

Hawkish Fed sends USD to six-month high: <\/strong> The USD reached its highest level in six months on Friday as investors took a pessimistic view on interest rates in the wake of the Federal Reserve meeting<\/a> last week, the Financial Times<\/a> reports. The central bank\u2019s indication that interest rates will need to stay higher for longer to curb inflation sent the currency to highs against the EUR, the GBP and the JPY not seen since March, and triggered sell-offs in the equity and treasury markets.<\/p>\n

A two-month rally: <\/strong> The USD index \u2014 which tracks the greenback against a basket of currencies \u2014 has risen more than 6% since its recent low in mid-July.<\/p>\n

Why this matters for countries like Egypt: <\/strong> This isn\u2019t good news for countries with USD-denominated debts or for those heavily dependent on imports. A stronger greenback makes it more expensive to service USD debt and to pay for imports.<\/p>\n

ALSO WORTH NOTING- <\/strong><\/p>\n