The US dollar rose to a six-month high, when the US stock and bond markets weakened and prepared

Investors for a long period of high interest rates, the currency reached its highs against the euro and the pound sterling

 

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Edited by| Tony Wild

 

Economy  section -  CJ journalist

 

World –  September 23,2023

 

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The yen has been falling since March, at least after the Federal Reserve set plans to cut interest rates, which

It has now reached its highest level in 22 years much more slowly than economists had thought.

US government bond prices fell, sending yields to 16-year highs, while the index suffered

The "Standard & Poor's 500" of leading US stocks has one of the deepest weekly declines of the year.

The portfolio manager at Janus Henderson Investors, James Briggs, told The Financial Times, " the markets have taken

A negative attitude to the Fed and to rise for a longer period is clearly entrenched and the conviction is that we are in a new regime."

The Fed decided to keep interest rates unchanged last week and signaled its intention to reduce them

Only slowly throughout the next year and in 2025, he was followed by the Bank of England, which also stressed the importance of maintaining interest rates

The European Central Bank raised its benchmark interest rates to their highest level on

The launch is this month.

The recent declines in US bond prices come after months of selling in global fixed income markets،

This is largely due to record high interest rates and rising inflation, while some market participants warn

That the chilling effect of a prolonged period of interest rate increases makes stock markets more fragile due to the impact of expensive growth

Borrowing in the wider economy.

As part of its efforts to tame inflation, which exceeded nine percent last year, the Fed raised interest rates

By 5.25 percentage points over 18 months, in one of the most aggressive monetary tightening cycles in its recent history.

 

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