Equity markets were volatile, with European stocks falling after more aggressive comments from the Federal Reserve in the previous day.
The Japanese currency fell against its US pair for the fifth consecutive session, reaching its lowest level since 2015, as the Bank of Japan is expected to lag behind the policy tightening of other major central banks.
In the meantime, The dollar was up 0.4% at 121.66 yen. Against a basket of six major currencies, the greenback was up 0.2%, trading within recent ranges.
“Market players and investors around the world continue to bet on the dollar on the idea that (the Fed) will be the most aggressive when it comes to interest rate hikes”said Mizuho’s Neil Jones.
He also added that the combination of rate hike expectations and the war in Ukraine creates a “perfect storm” for dollar gains. In this context, he said he expects the dollar-yen parity to rise to 125 units.
For his part, the The euro was down 0.2% at $1.09785. Meanwhile, commodity currencies declined: The Australian dollar was down 0.1% at $0.79151, and the New Zealand dollar was down 0.4% at $0.695.
Source: Ambito
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