Europehowever, has its own growth problems stemming from its increased exposure to Russian gas supplies as the region looks to refuel ahead of winter. Next-month Dutch gas, the benchmark for Europe, rose again on Wednesday as the prospect of a halt in supply from the Nord Stream 1 pipeline kept investors on their toes.
On Friday, Russia’s state-owned energy company Gazprom said Russia will cut off natural gas supplies to Europe for three days via Nord Stream 1 due to unscheduled maintenance.
The euro briefly traded at $1 on Tuesday but fell back to $0.9965, just above Tuesday’s 20-year low of $0.99005.
The market is awaiting the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, which begins on Thursday and in which Fed Chairman Jerome Powell will speak on Friday.
The dollar index, which measures the greenback’s performance against a basket of six currencies, stood at 108.67.
Money markets are fully pricing in a 50 basis point rate hike at next month’s Fed meeting, with traders pricing in more than 50% of the chance of a higher than 75 basis point hike, according to Refinitiv data. .
On Tuesday, Minneapolis Fed President Neel Kashkari repeated the need for more aggressive rate hikes to control inflation.
Source: Ambito
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