Al-Thawra Net/..
On Monday evening, the dollar fell from its highest level in about two months after Iran announced the end of its attacks on the Israeli entity.
The Iranian Armed Forces’ statements about the end of its operations against the Israeli entity led investors to turn to other currencies that declined, after the strong US jobs data issued on Friday prompted them to increase their bets that the Federal Reserve (the US central bank) would raise interest rates during the current year, according to Reuters.
The Iranian army announced, Monday evening, the end of a wave of attacks on the Israeli entity, the first it has carried out since the ceasefire last April, in response to the Zionist violations of the agreement, but the Iranian army threatened to resume the attacks if the Israeli entity continued to bomb Lebanon.
The dollar maintained most of the gains it made following the release of the non-farm payrolls report on Friday, which showed the United States adding 172,000 jobs last month, far exceeding expectations.
The euro witnessed a slight increase during the day, recording $1.1539, but it is still hovering near its lowest level in about nine weeks, while the British pound rose from its lowest level in three weeks to $1.3362.
Jonas Golterman, chief market analyst at Capital Economics, said: “The US jobs report presents a picture of the US labor market, which is witnessing improvements despite the current shock in energy prices.”
He added: “This situation makes it increasingly likely that the Federal Reserve will tighten monetary policy later this year… We now expect that the Federal Open Market Committee will raise interest rates twice by 25 basis points later this year, in response to the energy supply shock and the return of the US labor market to acceleration.”
The yen erased its gains achieved after Tokyo intervened by pumping 11.7 trillion yen ($73.01 billion) a little more than a month ago, when it fell to its lowest level since July 2024 at 160.725 to the dollar, and it was traded today, Monday, slightly below the level of 160 yen to the dollar.
Sources told Reuters that the Bank of Japan is expected to raise interest rates this month unless there is a sharp escalation in the conflict in the Middle East that destabilizes the markets, as rising fuel prices resulting from the energy crisis exacerbate price pressures on the economy.
