Data showing UK consumer price inflation hit a new 40-year high at 9.1% sent the pound down nearly 1% to a one-week low of 1.2162. Dollars, before cutting some of those losses. At 1115 GMT she was down 0.2% at $1.2254.
Investors got nervous again about global growth prospects, and a haven asset like the dollar gained ground against most of its peers. The yen hit a new 24-year low as rising US and European bond yields contrast with low Japanese rates.
“Recession fears are rising as central banks slow demand to curb inflation. Procyclical currencies are on the downside and the dollar remains in high demand,” said Chris Turner of ING.
The other main event of the day is the start of Federal Reserve Chairman Jerome Powell’s two-day remarks to Congress, with investors looking for more clues as to whether another 75 basis point rate hike is planned at the meeting. July of the entity.
The dollar index rose 0.05% to 104.5 units; the euro was down 0.1% at $1.0524; and the yen rose 0.65% to 135.96 per dollar, after touching 136.71 earlier, its lowest since October 1998.
Analysts see no immediate end to a sell-off that has seen the yen weaken 18% this year from 115.08 at the end of 2021.
The Bank of Japan kept rates ultra-low last week and pledged to defend its yield curve control policy, which effectively caps the 10-year Japanese bond yield at 0.25%.
Source: Ambito
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