The dollar has gained more than 4% in April and is headed for its best month since January 2015fueled by growing expectations that the Federal Reserve will raise interest rates aggressively in the coming months and that the US economy will hold up better than the euro zone.
Investors dumped the euro, which fell below $1.06 on Wednesday. Analysts say the common currency is being rocked by the war in Ukraine and growing concern that the bloc’s economy will slide into recession this year.
“The euro’s blatant inability to appreciate on the back of strong comments from European Central Bank members implies persistent vulnerability to an external environment negatively impacted by an ever-worrying situation in Ukraine and broad-based dollar strength,” the strategists wrote. ING currencies in a note to clients.
The euro traded as high as $1.0586 before recovering to break above $1.06. The dollar index, which compares the greenback to a basket of six leading currencies, gained 0.5% to 102.78 units, its highest level since March 2020.
European Stocks
European stocks fell at first, but then rebounded thanks to a recovery in futures markets on Wall Street after sharp falls the day before.
News that Russia has cut off gas supplies to Poland and Bulgaria sent the MSCI world stock index to its lowest level in 13 months.
The Euro STOXX 600 was up 0.97%, while Germany’s DAX was up 0.56% and Britain’s FTSE 100 was up 0.96%.
A mixed set of corporate earnings, including Alphabet Inc. — which reported its first quarterly revenue loss from the pandemic, while Microsoft forecast double-digit revenue growth for the next fiscal year — also weighed on sentiment. investors overnight.
MSCI’s broader index of Asia-Pacific shares excluding Japan fell 0.75%, having hit its lowest since mid-March. Japan’s Nikkei lost 1.17%, but battered Chinese stocks bucked their trend and gained almost 3%.
In commodities, crude oil futures were up around 0.3%, while spot gold was down 0.48% at $1,897 an ounce.
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.
