The US dollar rose to a 20-year high once morest the other major currencies during Tuesday’s trading, with expectations of a strong US interest rate increase to stem the acceleration of inflation.
The dollar rose once morest the euro by 0.3% at $0.9903 at 9:17 pm, to keep the single European currency falling to its lowest level with the dollar for the first time in two decades.
The US currency also rose once morest the Japanese yen by 1.7% to 142.9 yen, but fell slightly once morest the British pound, reaching 0.07% at 1.1525 dollars.
Meanwhile, the dollar index, which monitors the performance of the US currency once morest a basket of six major currencies, rose 0.6% to record 110,248 points, the highest level since 2002.
Investors in financial markets expect the Federal Reserve to raise the interest rate by 75 basis points on the twenty-first of this September, to reach a range between 3% and 3.25%, compared to a level near zero last March.
The yield on the US 10-year Treasury bond reached 3.3% for the first time since last June, with speculation that monetary policy tightening will continue for longer than previously expected.
And the data of the American Supply Institute revealed that the services purchasing managers’ index reached 56.9 points last August, compared to 56.7 points in the previous July, and compared to expectations that it indicated to record 55.4 points.
Source: Archyde.com
