Dollar has been high for almost a year as the federal government shifts its focus

Texas News Today

FILE PHOTO: An example of a US dollar bill in this photo taken on February 12, 2018. Reuters / Joseluis Gonzalez / Illustration / File photo

September 30, 2021

Kevin Buckland

TOKYO (Reuters) – Thursday’s dollar is one compared to major countries, after two days of hikes as hopes for the Fed’s stimulus cut from November and a possible rate hike in the second half of 2022. It remained close to the highest price in a year.

The Safe Haven greenback also saw bids for concerns that the Fed could begin tightening during a period of slowing global growth and maintaining high inflation. To shut.

The dollar index, which measures the currency against a basket of six rivals, stands at 94.336, having changed little since Wednesday, when it peaked at 94.435 for the first time since late September last year.

The dollar bought 111.86 yen, having fallen slightly after hitting 112.05 overnight. This is a level not seen since February 2020.

The euro remained almost unchanged at $1.1602, close to Wednesday’s 14-month low of $1.15895.

“The US dollar is in the house. Currency doesn’t matter. It’s like buying US dollars,” wrote Chris Weston, head of research at Melbourne securities firm Pepperstone, in a client note.

“We are effectively seeing both the left and right sides of the US dollar’s smile theory working seriously,” while “concerns about inflation” are mounting, while the Fed has eased since November. In December 2022, interest rates rose, according to Weston, which put prices in the market.

The “smile” theory assumes that the dollar works well for the US economy in good times and bad times, but not in between.

At the European Central Bank Forum on Wednesday, the Federal Reserve Board of Governors Jerome Powell, ECB Governor Christine Lagarde and Bank of England Governor Andrew Bailey said inflation amid rising energy prices and production constraints. He said he was paying attention.

Meanwhile, US Senate Republicans on Tuesday blocked President Joe Biden’s Democrats from bidding to avoid a potentially disastrous US credit default.

Sterling rose 0.1% to $1,34355, but fell to near a nine-month low of $1.3412 overnight on concerns about rising natural gas prices and a gasoline shortage in the UK for nearly a week. I wait

The risk-sensitive Australian dollar rose 0.15% to $0.71855 after losing $0.71705, its lowest since Wednesday 23 August.

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Currency Bid Price 0127GMT . Feather

Details RILast US Close Pct Change YTD Pct High Bid Low Bid

past changes

Session

Euro Dollar

$1.1602 $1.1598 + 0.03% -5.04% + 1.1606 + 1.1597

dollar / yen

111.8550 111.9700 -0.09% + 8.31% + 111.9650 + 111.8700

euro / yen

129.77 129.82 -0.04% + 2.25% + 129.9000 + 129.7700

Dollar / Switzerland

0.9340 0.9346 -0.06% + 5.58% + 0.9347 + 0.9335

sterling / dollar

1.3437 1.3427 + 0.10% -1.62% + 1.3443 + 1.3426

Dollar / Canada

1.2749 1.2753 -0.05% + 0.10% + 1.2763 + 1.2742

Australia / Dollar

0.7186 0.7174 + 0.17% -6.58% + 0.7196 + 0.7176

New Zealand

Dollar / Dollar 0.68690.6866 + 0.05% -4.34% + 0.6878 + 0.6866

all spots

Tokyo Spot

european spots

instability

Tokyo Forex Market Information from the Bank of Japan

(Reporting by Kevin Buckland; Editing by Sam Holmes)

Dollar has been high for almost a year as the federal government shifts its focus

Source Link The dollar has been high for almost a year as the federal government shifts its focus.

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