Last updated on May 4, 2023
| The US dollar increased in value on Friday due to inflation growth in March, but at a slower rate, which indicated that the Federal Reserve would raise interest rates at next week’s monetary policy meeting. In contrast, the yen decreased against the euro and dollar after the Bank of Japan decided to maintain ultra-low interest rates and make no changes to its yield curve control policy. The euro increased 1.8% on the week, while the dollar had a weekly gain of 1.6%, its best performance since February. The dollar index also rose by 0.2%. The Fed tracks the personal consumption expenditures price indexes for its 2% inflation target. |
Complex Terms:
- Federal Reserve – US Central Bank
- Monetary Policy Meeting – A meeting to decide monetary policy
- Euro – A European currency used by 19 countries
- Yen – The currency of Japan
- Interest Rates – Rates for borrowing money
- Dollar Index – Measure of the US Dollar value against other currencies
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