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The dollar hit a three-month high against the euro in a bet to speed up the Fed’s tightening.Kiwi soars

File Photo: In this figure, taken on May 26, 2020, Euro banknotes are placed on US dollar banknotes. REUTERS / Dado Ruvic / Illustration

July 14, 2021

Kevin Buckland

Tokyo (Reuters) -The US dollar has spurred a faster monetary tightening bet than the Federal Reserve Board has shown, three months against the euro and one week against the yen on Wednesday. I put a high price.

The New Zealand dollar rose 0.8% to US $ 70.07 after the Reserve Bank of New Zealand announced on Wednesday that it would cancel its major asset purchase program. On Tuesday, Kiwi sank to 69.18 cents for the first time since November.

The greenback rose to $ 1.17720 per euro, the highest since April 5th for the second straight day, and finally remained unchanged at $ 1.17780 from Tuesday.

It rose to 110.70 yen for the first time since July 7, and the last transaction was almost flat at 110.51.

National Australia Bank analyst Tapas Strickland said, “Is the hotter than expected US consumer price index a temporary or permanent rise in inflation? I am questioning. “

“The market supported the hawkish interpretation and brought expectations of a futures rate hike in late 2022,” the note said, leading to a “broad profit” on the dollar.

The dollar index, which measures the US currency against a basket of six peers, remained almost unchanged at 92.748 after rising to 92.832. This is just below the 92.844 level, which was first reached since April 5th last week.

Consumer prices in the United States rose the most in the 13 years of June, amid rising momentum in the economic recovery and continued recovery in the cost of travel-related services from supply constraints and a pandemic downturn.

Traders expect Federal Reserve Board Chair Jerome Powell to testify in Congress on Wednesday and Thursday about signals about stimulus tapering and the timing of high interest rates. Powell points out that he expects the supply chain to normalize and adapt, and reiterates that rising inflation will be temporary.

Elsewhere, the Canadian dollar maintained its largest decline in a week, trading almost unchanged at $ 1.2500 per greenback, weakening towards a two-and-a-half-month low of $ 1.2590, which reached last week. ..

The Bank of Canada will update its economic forecast with a policy announcement later Wednesday, further reducing asset purchases.

(Report by Kevin Buckland; edited by Jacqueline Wong)



The dollar hit a three-month high against the euro in a bet to speed up the Fed’s tightening.Kiwi soars

Source link The dollar hit a three-month high against the euro in a bet to speed up the Fed’s tightening.Kiwi soars

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