The US dollar reached a new 20-year peak compared to its major peers on Tuesday, supported by safe bidding and expectations of further aggressive rate hikes by the Federal Reserve Board. On the other hand, the euro was fixed at the lowest price in 20 years, which is almost the same as the greenback. ..

The dollar index, which is an indicator for the six most heavily weighted counterparts of the euro, was 108.43, up 0.25%. It had previously risen to 108.47, the highest since October 2002.

“Demand for the US dollar is likely to have contributed to the recent appreciation of the dollar, coupled with the rise in the payroll release last Friday,” Maybank analysts said.

The dollar’s bullishness has been seen in many currency markets, with the euro falling to $ 1.006, the lowest since December 2002. Finally, it fell 0.29% to $ 1.0313.

Sterling also fell 0.25% to $ 1.18645, down to $ 1.186, the lowest in two years.

“”[Euro] Maybank analysts reiterate the potential for a more significant decline in growth in the euro area, amplified by recent depreciation due to energy problems, longer-lasting wars, and doubts about the ECB’s anti-fragmentment tools. It seems to have been driven primarily by the markets we value. ” Said.

Nord Stream

The NordStream1 pipeline, the largest single pipeline to bring Russian gas to Germany, will begin annual maintenance on Monday and the flow is expected to stop for 10 days.

Governments, markets and businesses are concerned that Russia could extend its closure due to the war in Ukraine, exacerbate the continent’s energy supply crisis and potentially accelerate the recession.

“We will look at whether Russia’s gas flow will return via the Nord Stream 1 pipeline after next week’s maintenance,” said Carol Kong, currency strategist at the Commonwealth Bank of Australia.

“But in the meantime, concerns about the possibility of Russia’s gas flow being cut off will continue to weigh the euro / dollar, which I think means the dollar will continue to rise.”

The depreciation of the euro is a big part of the rise in the dollar index, and safe U.S. currencies are underpinned by growth concerns elsewhere, with China in particular implementing a strict zero-corona policy to contain new outbreaks. doing.

But perhaps the biggest driver of the dollar’s appreciation is the view that the Fed will raise rates faster and farther than its peers.

The Fed is expected to raise rates by 75 basis points for the second consecutive year at its meeting from July 26th to 27th. Federal funds futures are priced to raise the benchmark rate from the current 1.58 percent to 3.50 percent by March.

Investors are enthusiastically watching US consumer price data scheduled for Wednesday. Economists surveyed by Reuters expect the June index to be 8.8% annually.

Elsewhere, the dollar fell 0.09% to 137.28 yen after a surge to Monday’s high of 137.75.

The Philippine peso fell 0.59 percent to its lowest since September 2005 at $ 56.38. And the Korean won fell to the lowest level since April 2009 at 1,315.2 per dollar.

The Australian dollar gave up 0.22 percent to $ 0.6728, consistent with Monday’s first low of $ 0.6716 in two years amid falling commodity prices and restraining fresh Chinese Covid.

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