U.S. dollar

The dollar hit a two-decade high on Thursday, following inflation in the United States fell less than the markets expected, which means that the Federal Reserve will go on its way to tighten monetary policy strongly.
The dollar, which is a safe haven, also got support from the decline in global stocks, amid investors’ fears that central banks are behind this trend, in an attempt to curb consumer prices, as growth is already facing risks as a result of the closures that China has implemented for a while to contain the Corona virus.
The dollar index, which measures the performance of the US currency once morest six major currencies, rose by regarding one percent to 104.22, its highest level since December 2002.
The consumer price index rose 8.3 percent on an annual basis in April, down from 8.5 percent in March, but exceeded economists’ expectations of 8.1 percent.
The data suggests that inflation may have peaked, but is unlikely to ease quickly and derail the Fed’s monetary policy plans.
The euro settled at $1.05095 following receiving a boost overnight, as the European Central Bank boosted expectations that it will raise interest rates in July for the first time in more than a decade.
The single European currency fell to its lowest level in more than five years at 1.04695 dollars at the end of last month.
The yen rose 0.2 percent to 129.67 once morest the dollar, moving further away from a more than two-decade low of 131.35 hit on Monday, with 10-year Treasury yields falling to an almost two-week low of 2.862 percent in trading in Tokyo. .
The pound, which also tends to move with risky assets, fell to $1.2211 Thursday for the first time in nearly two years.
The Australian dollar fell 0.76 percent to $0.6885, and earlier reached $0.68795 for the first time in nearly two years. The New Zealand dollar also fell 0.79 percent to $0.6240, which is also the lowest level in nearly two years. (Archyde.com)

Hong Kong/Archyde.com
The dollar held near a two-year high on Tuesday, as concerns regarding the economic impact of China’s anti-Covid-19 closures curbed the dollar’s safe-haven appeal while expectations of a US interest rate hike kept bond yields high.
The dollar index, which measures the performance of the US currency once morest six major currencies, fell 0.13 percent to 101.59 points, following reaching its highest level in two years at 101.86 last night.
The index has risen 3.3 percent since the beginning of the month, in what will be its largest monthly gain since November 2015.
“The bet for a further rise (for the dollar index) remains a good bet,” Westpac analysts said in a note. China’s growth risks are rising as the authorities continue their aggressive anti-Covid campaign, conditions in Ukraine remain volatile, and the Federal Reserve’s rhetoric remains as hawkish as ever.
However, the offshore Chinese yuan rose slightly to 6.5572 once morest the dollar following the People’s Bank of China said late on Monday that it would reduce the amount of foreign currency reserves that banks must hold.
This helped the currency recover from a one-year low of 6.609 per dollar hit yesterday, hit by concerns regarding economic growth in China.
Stock markets and US bond yields also rose on Tuesday amid an improvement in overall risk appetite.
The euro was at $1.0727, up 0.14 percent and down from a two-year low of $1.0697 hit on Monday, when the impact of market anxiety outweighed optimism for French President Emmanuel Macron’s re-election.
And the pound sterling recorded $ 1.2744, up 1.8 percent, following hitting its lowest level since September 2020 last night.
The Australian dollar rose 0.6 percent from a two-month low hit last night, following lockdowns in China affected commodity prices.
The dollar was little changed once morest the yen, reaching 128.16. The Japanese currency managed to recover slightly this week from a 20-year low of 129.40.
Bitcoin climbed slightly to $40,600, while Ether hit $3,000.
Researchers at cryptocurrency liquidity provider B2C2 said that trading in the cryptocurrency market is currently closely related to the stock markets, in the absence of any strong themes related to cryptocurrency.

The dollar rose once morest the euro on Wednesday as investors worried regarding the impact of the escalating conflict in Ukraine on the economic outlook for the euro zone, while commodity-linked currencies consolidated gains.
The Russian ruble continued its decline to a new low once morest the backdrop of the severe damage caused to the Russian financial system by harsh Western sanctions following Moscow’s invasion of Ukraine.
“Evolution related to the war in Ukraine will continue to be the main driver of euro prices during the session,” said Shaun Osborne, senior exchange market analyst at Scotia Bank.
“The continued escalation of the conflict with the absence of clear solutions for Russia will push the euro towards the 1.10 barrier in the coming days,” he added.
The euro was down 0.3 percent once morest the dollar, following falling to a 21-month low of 1.1059 earlier in the session.
Meanwhile, US Federal Reserve Chairman Jerome Powell said on Wednesday that the Fed would press ahead with plans to raise interest rates this month in an attempt to curb inflation, even though the outbreak of war in Ukraine made the outlook “very foggy”.
The dollar index, which measures the performance of the US currency once morest a basket of six major currencies, rose 0.3 percent to 97.604. The index had jumped to 97,834, its highest level since June 2020, earlier in the session.
Commodity-linked currencies, including the Canadian, Australian and New Zealand currencies, have boosted their value as investors anticipate that they will benefit from higher commodity prices.
The Australian dollar rose 0.19 percent, the New Zealand dollar 0.2 percent and the Canadian dollar 0.4 percent.
Rising investor appetite for riskier currencies kept the Swiss franc and Japanese yen, two of the safe haven currencies, under pressure, with the dollar gaining 0.2% once morest the franc and 0.5% once morest the yen.
(Archyde.com)