The dollar index is at a two-decade high… it has risen 9% against the major currencies since the beginning of the year

The dollar rose to a 20-year high yesterday, as a combination of rising US Treasury yields and closings in China boosted the dollar’s safe-haven appeal.
According to “Archyde.com”, the dollar index once morest a basket of major currencies exceeded 104.19 for the first time since July 2002, continuing its rise by 9 percent this year.
And the pace of the Fed’s rate hike cycle is much faster than its counterparts, the Bank of England and the European Central Bank.
Money markets expect the US to raise interest rates by another 200 basis points over the remainder of the year, raising benchmark interest rates to nearly 3 per cent.
The growth-sensitive Australian dollar fell 1 percent to $0.6999, its lowest since February. The pound sterling and the New Zealand dollar reached their lowest levels in 22 months, while the euro and the yen did not register a significant increase from the significant declines reached in recent times. In addition, the yields of most US treasury bonds fell yesterday, amid profit-taking sales following the benchmark 10-year Treasury yield hit its highest level in three and a half years, while inflation fears continue to turmoil the markets. The 10-year bond yield was trading at 3.0911% by 16:20 GMT, following earlier recording 3.20 percent, its highest level since November 2018.
In a related context, gold declined with the rise of the dollar, which reduced the attractiveness of dollar-denominated gold to holders of other currencies, while the rise in US Treasury yields put additional pressure on prices.
And gold fell in spot transactions 0.7 percent to $ 1870.70 an ounce by 08:17 GMT, and US gold futures fell 0.8 percent to $ 1867.90. As for other precious metals, silver fell in spot transactions 0.6 percent to $22.21 an ounce, platinum fell 1.2 percent to $951.34, while palladium rose 2.4 percent to $2095.53.

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Categories Economy