The dollar index touched 100 points in the early hours of the European session, its best level since May 2020. It then lost some momentum and traded little changed at 99.844.
The index has risen 1.3% this week, marking its biggest gain in a month, on the back of hawkish comments from several Fed officials calling for a faster pace of rate hikes to curb inflation.
The release this week of the Fed’s March meeting minutes showed “many” participants were willing to raise rates in 50 basis point increments in coming months.
Meanwhile, the euro hit a fresh one-month low at $1.0848. It later recovered and was almost flat at $1.08770.
Minutes of the European Central Bank meeting released on Thursday suggest policymakers are ready to act to fight inflation, but the euro zone has so far taken a more cautious approach than other central banks, weakening the euro.
The electoral race in France between President Emmanuel Macron and far-right candidate Marine Le Pen has added to the pressure on the euro, raising investor concerns about the future direction of the euro zone’s second-largest economy. although Macron is still ahead in the polls.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
