US dollar reached its weekly highs


In the early morning of  27 September, 2019, according to the US Dollar Currency Index (DXY), the US dollar (USD) exchange rate peaked and reached its highs. Later on today at 6:55 am CET, the value of the DXY index was at 99.16 level, with a daily increase of + 0.03%.

It happened despite US President Donald Trump’s recent case regarding a phone call with Ukrainian President Zelensky, in which Trump allegedly requested Ukraine’s cooperation to launch an investigation into the corruption scandal of former Vice President Joe Biden’s son, who spent more than five years working in Joint US-Ukrainian Energy Company. This step was supposedly motivated by the fact that Democrat Joe Biden could be his counter-candidate in the presidential election in 2020. The Democrats in Congress considered this as an act against the US Constitution and abuse of the President’s powers, and initiated steps to bring a constitutional lawsuit called impeachment. According to the rapporteurs, this step is viewed more as a pre-election tactic rather than depriving Donald Trump of his presidency, due to the Republican majority in the United States Senate.

The international foreign exchange (Forex) market did not respond to these facts and the exchange rate of the US dollar (USD) against other world currencies remained stable, especially against the Japanese yen (JPY), when the mutual exchange rate was an average value of JPY 107,70 per USD. The single European currency, the euro (EUR), on the contrary, weakened even more against the USD, with exchange rate being US$ 1.0916 per EUR. On 27 September, 2019, at 7:13 am CET, this global currency pair traded at a rate of US$ 1.0919 per EUR with daily EUR decline of -0.02% against the USD. However, at the same time the US dollar depreciated briefly against the British pound (GBP) as the GBP/USD currency pair traded on the Forex market at an exchange rate of US$ 1.2328 per GBP, with a daily GBP appreciation of + 0, 05% against USD.

According to analysts the appreciation of the US dollar (USD) also had an impact on the commodity market, with the USD being the main commodity currency it can affect the actual course of the business trend depending on the demand and supply of individual commodities and especially in relation to the prices of investment gold and the market value of oil. On 27 September, 2019, at 7:21 am CET, light crude oil WTI traded at US$ 56.10 per barrel with a daily decline of -0.55% of its price. At the same time investment gold also recorded a decrease of -0.09% of its daily price at US$ 1.513.80 per troy ounce. According to economic correspondents, along with commodity markets financial strategists, this situation is a typical example of the inverse relationship of the USD and the commodity market, especially oil and gold.


Please enter your comment!
Please enter your name here