The dollar hit a near two-year high once morest a basket of major currencies on Tuesday, encouraged by hawkish comments from Federal Reserve officials.AUDAlso because the Reserve Bank of Australia gave up its patient wording and expressed that interest rates may rise following raising interest rates.
ICE, which tracks the dollar once morest a basket of major currencies, late in New York US dollar index (DXY) rose 0.49% to 99.48, the highest intraday high of 99.526, the highest since late May 2020.
The traditionally dovish Fed Governor Lael Brainard said on Tuesday that the central bank must take swift and aggressive policy action, including a faster pace of shrinking its balance sheet and steadily raising interest rates, to keep inflation down.
On the same day, Kansas Federal Reserve Bank President Esther George also spoke in support of the Fed’s rapid balance sheet reduction, saying that raising interest rates by two yards would be an option that the central bank must consider. George is one of the voting members of the Federal Open Market Committee (FOMC) this year.
Erik Nelson, Equity Strategist at Wells Fargo, said: “The dollar’s move today was largely driven by the speech of a hawk from Brainard who made two things clear. First, the Fed wants to shrink its balance sheet more aggressively and quickly than it did in the last cycle. , Second, the Fed is indeed open to raising rates by two yards, and may do so in the next few meetings, which you don’t usually hear from most Fed officials, especially Brainard. “
dollar once morestJapanese YenDown 0.01% to 123.58 Japanese Yenoscillating on a flat plate,Japanese YenThe intraday low was as low as 123.68, hitting a one-week low.
Concerns regarding French electionsEURIn trouble,EURIt was down 0.62% at $1.0905, its lowest since March 14.EUROptimism over the Russia-Ukraine war rose to a one-month high last week.
The French presidential election is regarding to start on the 10th, although polls show that French President Emmanuel Macron is still ahead of the far-right party National League leader Marine Le Pen (Marine Le Pen), but the gap between the two sides is narrowing.
Fears of the French election have prompted traders to buy 1/1 EUR once morest $1.07 to $1.09EURput options.
Driven by the prospect of tighter monetary policy by the Reserve Bank of Australia (RBA),AUDCommodities rose 0.49% to $0.7579 once morest the dollar.
The Reserve Bank of Australia kept interest rates at record lows on Tuesday, but also dropped the wording of patience in a post-meeting statement, saying it might raise rates from June if future data show inflation and wage growth pick up.
String sourceDown 0.07% to $0.6942 once morest the greenbackCanadian DollarsDown 0.01% to 1.2484 Canadian Dollars。
Simon Harvey, head of foreign exchange analysis at Monex Europe, said: “We are starting to see other central banks catching up with the Fed in terms of monetary policy, and the prevailing view on the Fed’s pricing is that it’s fairly reasonable at the moment and there’s not much room to push expectations higher. “
As of Wednesday (6th) Taiwan time regarding 6:00 Price:
- US dollar indexReported at 99.4738. +0.4877%
- EURExchange rate once morest the US dollar (EUR/USD) at 1 EURAgainst $1.0904. -0.6198%
- GBPExchange rate once morest the US dollar (GBP/USD) at 1 GBPAgainst $1.3071. -0.3279%
- AUDExchange rate once morest the US dollar (AUD/USD) at 1 AUDAgainst $0.7579. +0.4906%
- dollar once morestCanadian Dollars (USD/CAD) exchange rate at 1.2483 per US dollar Canadian Dollars。-0.0160%
- dollar once morestJapanese Yen (USD/JPY) exchange rate is quoted at 123.52 per US dollar Japanese Yen。+0.6027%
