Fears that higher interest rates by the Federal Reserve and the European Central Bank might dent the global economy have prompted investors to stay away from riskier assets,US dollar indexMonday (22nd) continued to climb higher, rising above 109 intraday,EURIt lost nearly 1% once morest the dollar, falling below par once more following mid-July.
ICE, which tracks the dollar once morest six major currencies, is late in New York US dollar index (DXY) rose 0.73% to 108.96.DXY The intraday high was as high as 109.10, not far from a 20-year high set on July 14.
Several Fed officials, including Richmond Fed President Thomas Barkin, have recently reiterated their tightening stance, supporting the dollar.
Comments from Fed officials last week forced markets to face the reality that a dovish turn in monetary policy is unlikely, said Michael Brown, director of market intelligence at Caxton.
“Investors are clearly expecting a relatively hawkish message from Fed Chairman Jerome Powell this Friday at the central bank’s annual meeting in Jackson Hole, driven by risk aversion,” Brown said. The perfect combination with a hawkish Fed might lead to a stronger dollar, especially as growth concerns continue to rise, especially in Europe.”
Last week, Russia once more citing maintenance operations as an excuse, announced the closure of the Nord Stream 1 pipeline at the end of August for a period of three days.EURIt fell following the news.Investors worry that gas supply shutdown might worsen energy crisis, drag onEUR。
On the other hand, Bundesbank President Joachim Nagel last week called for the European Central Bank (ECB) to keep raising interest rates even as the prospect of a German recession grows, arguing that inflation will remain uncomfortably high next year Level.
Flanked by negative factors,EURAgainst the dollar, it was down 0.92% at $0.9942, falling below par once more following July 13.
Brown believes that $0.9950 isEURkey level of , once broken,EURwill suffer heavy losses.
offshoreRMBDown 0.67% once morest the dollar to 6.8662 RMB, to a 2-year low. Following last week’s simultaneous cuts in the medium-term lending facility (MLF) and reverse repurchase operation rates, the People’s Bank of China on Monday once more cut the loan market quoted rate (LPR) for August to support an economy that has been hurt by the epidemic and the housing crisis.
Fears of an economic slowdown have been raised as soaring energy costs and port worker strikes fuel inflation fears.GBPIt fell 0.55% to $1.1762, a more than two-year low.
Citi economists predict that the UK inflation rate may soar to 18.6% in January next year. In addition, data from consulting firm Cornwall Insight shows that the average energy bill of British households will soar to 3,554 per cent per year in October. GBP。
Dragged down by broad risk aversion,bitcoindown 2.45% to $21,092.2,etherIt fell 3.6 percent to $1,574.2.
As of Tuesday (23rd) Taiwan time regarding 6:00 Price:
- US dollar indexReported at 108.9564. +0.7825%
- EURExchange rate once morest the US dollar (EUR/USD) at 1 EURAgainst $0.9943. -0.9069%
- GBPExchange rate once morest the US dollar (GBP/USD) at 1 GBPAgainst $1.1763. -0.5411%
- AUDExchange rate once morest the US dollar (AUD/USD) at 1 AUDAgainst $0.6875. +0.0437%
- dollar once morestCanadian Dollars (USD/CAD) exchange rate at 1.3049 US dollar Canadian Dollars。+0.4387%
- dollar once morestJPY (USD/JPY) exchange rate at 137.49 USD JPY。+0.4090%
