Dollar strengthens against major currencies As investors buy dollars as a safe-haven currency Amid concerns about the conflict between Russia and the West over Ukraine
The dollar was also boosted by expectations that the Federal Reserve will raise interest rates faster and harder than expected to curb inflation.
As of 12:49 a.m. GMT, the dollar was 0.04% to 113.72 yen, while the euro was down 0.11% to 128.77 and 0.13% to $1.133. The index measures the dollar’s movements against six major currencies in a basket of currencies, up 0.3% to 95.93.
The United States and Britain have told diplomats and their families to expedite evacuation from Ukraine. The North Atlantic Treaty Organization (NATO) has announced that it will strengthen its military by land, sea and air along its eastern border. This is because it is more likely that Russia may soon attack Ukraine.
Russia has deployed nearly 100,000 troops to the Ukrainian border. While the talks between Russia and the West have not progressed.
Markets are keeping an eye on the Fed’s Jan. 25-26 monetary policy meeting after several Fed officials expressed support for a March rate hike to curb inflation. These include Fed Governor Lael Bernard, Chicago Fed President Charles Evans, Philadelphia Fed President Patrick Harker and Mary Daly, President of the Fed, San Francisco Branch
The CME Group’s FedWatch Tool indicates that investors are giving as much as 100 per cent the interest the Fed will raise interest rates by 0.25% at its March monetary policy meeting. This was the month when the Fed ended its quantitative easing (QE) bond-buying program, with the Fed expected to raise interest rates four times this year.
On the Goldman side Sachs forecasts the Fed will raise interest rates more than four times this year and will begin cutting its balance sheet in July or sooner. from the current skyrocketing to more than 8 trillion dollars