US dollar (Archyde.com)
The US dollar hit a five-year high on Wednesday ahead of next week’s Federal Reserve meeting that is expected to raise interest rates, while the euro fell on growth concerns following Russia cut gas supplies to two eastern European countries.
And the dollar received support from expectations that the US central bank will be tighter monetary policy than its peers. The Federal Reserve is expected to raise interest rates by 50 basis points at its meeting on May 3rd and 4th, and also in June and July.
The greenback has also benefited from global growth concerns as Europe grapples with the fallout from Russia’s invasion of Ukraine and China imposes lockdowns in an effort to stem the spread of COVID-19.
The dollar index, which measures the value of the US currency once morest a basket of six competing currencies, jumped to 103.28, its highest level since January 2017, before falling slightly to 102.947 in late trading.
The euro fell to $1.0515, its weakest level since March 2017, before recovering slightly to $1.0559. The European currency has lost 4.6 percent of its value since the beginning of April and is on track to record its worst monthly loss in more than seven years.
The Japanese currency settled at 128.45 yen once morest the dollar, following it plunged to a 20-year low of 129.40 yen last week.
The British pound hit its weakest level in 21 months at $1.2502, with UK retail sales falling, and it was trading in late trading, down 0.24 percent at $1.2542.
