At around 9:15 p.m., the euro gained 0.28% to $ 1.1463 per euro, following hitting $ 1.1481 per euro earlier in the session, a peak since November 10.
The euro continued to rise on Thursday to a new two-month high once morest the US dollar, whose shine faded in early 2022.
Around 8:15 p.m. GMT, the euro gained 0.28% to $ 1.1463 per euro, following hitting $ 1.1481 per euro earlier in the session, a peak since November 10.
At first glance, however, the week should be positive for the greenback: the head of the US Federal Reserve (Fed) promised before the Senate to act once morest inflation, which in December reached a record in several decades, at 7%.
But the publication of these data on the contrary weighed on the dollar as of Wednesday, while the expectations, integrated by the market, on a tightening of the monetary policy of the Fed brought the greenback to a level difficult to support.
“The dollar is struggling to build on the robust gains of last year. This is because the markets have already predicted that the Fed will hike rates (by a quarter of a percentage point) at least three times this year, ”commented Joe Manimbo of Western Union.
In recent months, the market has indeed increased bets on a tightening of the Fed’s monetary policy.
For Ricardo Evangelista, analyst at ActivTrades, the improvement in the outlook for the recovery of the global economy is also weighing on the currency, since “we must not forget that the greenback tends to come out of it when the world economies are suffering. “.
“Dollar weakness might continue if markets continue to hold faith in the global economic recovery,” confirmed Neil Wilson, analyst at Markets.com.
The euro was not the only currency to regain ground once morest the dollar. The British pound was up 0.15% to $ 1.3720, following hitting $ 1.3747, a two-and-a-half-month high.
