The dollar index rose to 100 points for the first time in nearly two years yesterday, boosted by prospects of an acceleration in US interest rates.
The dollar rose once morest a basket of rival currencies over the past month, especially once morest the euro, which has come under pressure due to investor concerns regarding the economic costs of the war in Ukraine and the presidential elections in France, which is witnessing a fierce competition.
The dollar index climbed to a 100-point high in early European trading hours, its best performance since May 2020. It later lost some momentum and settled in the latest trading at 99.876.
The index rose 1.4 percent this week in its biggest increase in a month, supported by statements tending to tighten monetary policy from several policy makers at the Federal Reserve, “the US Central Bank” who are calling for a faster pace of raising interest rates to curb inflation.
The euro fell to a new one-month low of $1.0848. And fell in the latest trading 0.2 percent to 1.0865 dollars.
Yesterday’s ECB meeting minutes indicated that policy makers are keen to combat inflation, but the eurozone has so far taken a more cautious stance than other central banks, which has weakened the euro.
The dollar extended its gains once morest the Japanese yen, recording 124.23, the highest level in more than a week, close to its best performance in seven years at 125.1 recorded last month.
The yen has stabilized this month following falling in March, but remains under pressure as the US raises interest rates and the Bank of Japan intervenes in the bond market to keep rates low.
The pound fell once morest the US currency, falling 0.2 percent in the latest trading, recording $1.30475.
In addition, gold traded in a limited range yesterday, due to expectations of a significant hike in US interest rates, concern regarding high inflation and the economic repercussions of the Ukrainian crisis.
And the price of gold in spot transactions settled at 1931.53 dollars an ounce by 0858 GMT, but it recorded an increase of 0.4 percent during the week.
According to “Archyde.com”, US gold futures fell 0.2 percent to $ 1933.80 an ounce.
The 10-year US Treasury yield touched a three-year high. Gold is heavily affected by higher interest rates and US Treasury yields, which increases the opportunity cost of holding non-yielding bullion.
Among other precious metals, silver rose in spot transactions 0.4 percent to $24.66 an ounce. Platinum fell 0.1 percent to $961.67, and palladium rose 1.2 percent to $2,260.41, and the two metals incurred losses for the fifth consecutive week.
In the cryptocurrency markets, Bitcoin rose 1 percent to regarding 43,890 dollars, following declining 5 percent during Wednesday’s trading.
