Around 5:30 p.m., the Dollar index took around 0.49% to 104.45 points, following several days of decline.
The dollar rose once morest the euro on Tuesday, supported by the aggressive monetary policy of the Fed which is pulling the greenback higher, a member of the American Central Bank even affirming that the economy of the United States, if it slows down, is not heading into a recession.
Around 3:30 p.m. GMT (5:30 p.m. in Paris), the Dollar index, which compares the American currency to other major currencies, took around 0.49% to 104.45 points, following several days of decline.
“Recession fears and expectations that the Fed (Federal Reserve) would not be able to raise rates aggressively had dragged the greenback lower,” said Fiona Cincotta, an analyst at City Index.
The American economy is slowing down, but not to the point of falling into recession, the president of the New York branch of the American Central Bank (Fed) said on Tuesday.
“I think the economy is strong,” John Williams told CNBC. Faced with inflation, which in May was still at a level never seen in 40 years, he said he was convinced of the need to further increase key rates.
In mid-June, the Monetary Committee (FOMC) surprised the markets by deciding at the last minute to tighten the monetary screw by 75 basis points, an increase not seen for almost 28 years.
The euro, meanwhile, fell once morest the greenback as German consumer sentiment was expected to hit an all-time low in July as war in Ukraine led to soaring prices in Europe’s biggest economy.
The GfK institute predicts an index of -27.4 points for July in Germany, the lowest figure since the start of the series in 1991, according to this monthly survey published on Tuesday and carried out among 2,000 people.
The European Central Bank (ECB) will go “as far as necessary” to fight once morest “excessively high” inflation which should remain so “for some time to come” in the euro zone, its president Christine Lagarde warned on Tuesday.
Euro appreciation might, however, “start to get more difficult”, warns You-Na Park-Heger, an analyst at Commerzbank, “as fears of a weakening global economy are likely to weigh on sentiment. market”.
The yen declined on Tuesday, still suffering from major divergences between the Bank of Japan (BoJ), which prefers to maintain a very accommodating monetary policy when the other central banks raise their interest rates, sometimes aggressively.
Around 3:30 p.m. GMT, the yen lost 0.59% once morest the greenback at 136.27 yen to the dollar, approaching a lowest for the Japanese currency since the 1998 financial crisis in Japan reached last week.
On the cryptocurrency side, bitcoin held above the $20,000 mark for the fifth day in a row, at $20,654.82. The queen of cryptocurrencies, however, has lost nearly 55% of its value since the start of the year.
