Briefly: why is the dollar rising in price?

By the results of the Fed meeting confirmed its intention to stick to the ultra-soft monetary policy for quite a long time, stating that the interest rate increase should not be expected until at least 2023. Despite such statements, the USD exchange rate demonstrated growth against the euro, but declined against the pound and the yen.

Do we have a long period of dollar weakness ahead of us? Why did the U.S. currency rise against the euro, but fell against the pound and the yen? Sergey Drozdov, an analyst at FINAM, answered Fortrader magazine's question.

- It is worth noting that in the last few months, amid regular pumping of liquidity into the market by the U.S. Federal Reserve System, players made aggressive bets on the decline of the U.S. currency. However, at the end of the meeting, the office of Jerome Powell, having promised to conduct an ultra-soft monetary policy for a long time, did not say a word about the prospects of new monetary stimulus, which became the reason for liquidation of some short positions, opened earlier against the "American".

And if, in future meetings, the Federal Reserve pursues similar tactics, it could lead to strengthening the dollar's position on the world currency market.