The dollar gains strength as the Bank of England (BoE) surprisingly will raise interest rates in November 2021.
- The US dollar index against a basket of other major currencies rose 0.02% to 93.558.
- The yen dropped 0.10% to 114.14 yen per dollar.
- The Australian dollar rose 0.14% to 0.7526.
- The New Zealand dollar fell 0.15% to 0.7190.
- The yuan fell 0.02% to 6.3925 against the dollar.
- The pound fell 0.05% to 1.3817 pounds per dollar.
- The baht remained stable at 33.375 baht per US dollar.
The BoE is overtaking the Fed, as the BoE may raise interest rates before the Fed. It is expected that the Fed will announce the start of asset tapering at its November 2021 meeting, but will not start raising rates until 2022.
The massive increase in commodity prices also gave the dollar some help. Commodities in the energy sector have risen higher than they have in a long time. In addition, industrial metals such as copper and zinc are also rising dramatically.