The upcoming change in FRS leadership results in dollar appreciation
On Monday, October 23, the exchanges recorded a gradual appreciation of the dollar against all world currencies.
Such appreciation is caused by the growing hype around the upcoming appointment of the new head of the Federal Resource System – an agency that serves as the central bank in the USA. This situation was also influenced by the recent yield increase of US Treasuries – United States treasury bonds.
Some depreciation in the Euro against the dollar was also observed. On Monday morning, the European currency was worth $1.1770 compared to $1.1784 by the close of business in New York last week. The reason behind the Euro plunging is believed to be associated with the volatile situation in Catalonia, which has recently declared their commitment to secede from Spain.
In assessing the stock exchanges, Janet Yellen, the current Chair of the Federal Reserve System stated that her office would continue to use innovative methods for supporting the economy should the situation warrant so.