The dollar rose once more on Thursday, galvanized by the prospect of even tighter monetary policy in the United States to limit inflation, which hit new highs in June
Around 09:25 GMT (11:25 a.m. in Paris), the greenback took 0.39% to 1.0021 dollars for one euro. The Dollar Index, which compares the US currency to other major currencies, has hit a new high since September 2002.
US inflation hit 9.1% year on year in June, data showed on Wednesday, hitting a new high since November 1981 and beating market expectations.
Investors are therefore multiplying bets on a faster rise in rates by the Federal Reserve of the United States (Fed), which might follow the example of the Bank of Canada and raise its rates by one point.
“In June, the Fed signaled that the July decision would be between 0.50 and 0.75 percentage points. The problem is that the Fed had indicated a 0.50 point hike in June and opted to the place for 0.75 points”, recalls Stephen Innes, analyst at SPI AM.
“There are few indicators between today and the Fed’s decision ‘expected on July 27’ that might change the market’s view,” added Ipek Ozkardeskaya, analyst at Swissquote.
Before a period of silence imposed on members of the monetary institute before their meetings, the president of the Fed’s office in San Francisco, Mary Daly, told the New York Times that she would “probably support a rise of 0, 75”, but she also felt that a rise of one point was also possible.
