Fed raises interest rates, lower fuel prices

Fed raises interest rates, lower fuel prices
Fed raises interest rates, lower fuel prices

Investors believe that the central bank of many countries may raise interest rates to control inflation. The dollar has already strengthened. This increases the risk of other asset prices falling. As a result, the price of fuel oil has decreased in the international market. This information has been reported in a report by the news agency Reuters. On Wednesday (September 21), the policymakers of the United States’ central bank, the Federal Reserve (Fed), will meet. They can announce a 75 basis point interest rate hike there. The Bank of England and other central bankers will also sit in the meeting this week. They can follow the same path to curb inflation. Equity markets are riding on that prospect. At the same time, the price of fuel oil is falling. Higher interest rates have strengthened the dollar. The dollar hit a nearly 20-year high against other major international currencies on Tuesday (September 20). This makes it expensive to buy oil from holders of other currencies. The price of international benchmark Brent crude fell by 1.38 dollars or 1.5 percent on the futures market that day. A barrel was sold at 90.62 dollars. US benchmark West Texas Intermediate (WTI) crude for October delivery fell by $1.28. Each barrel sold at 84.45 dollars. Fuel oil prices are on a downward trend in the current quarter. It is at its lowest level since the start of the Covid-19 pandemic. Earlier, the price of Brent rose to 139 dollars per barrel last March. Which was the highest since 2008. Robert Yauger, director of energy futures at Mizuho in New York, said the main drivers of oil prices are the dollar and the Fed. They can destroy any demand for inflation.

ABN/Shankar Roy/Jasim/Pinky


The article is in Bengali

Tags: Fed raises interest rates fuel prices

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