In the afternoon business the dollar index rose 0.2% to 113,300 unitsclose to the 20-year high of 114.78 units it hit late last month.
Strong US labor market data and expectations that Thursday’s inflation figures will remain elevated cemented expectations that interest rates will remain high through 2023, which should take the dollar from new highs since 2002 it reached last month.
“Last Friday’s US payrolls report was pretty strong and came as a huge blow to anyone looking for a Fed pivot at any time. The Fed has to keep stepping on the accelerator,” said Mazen Issa, senior strategist. TD Securities foreign exchange office in New York.
Appetite for risk assets was also affected by the fact that Russia continued to attack Ukrainian cities on Tuesday, in retaliation for an explosion that damaged the only bridge linking Russian territory with the annexed Crimean Peninsula.
The greenback hit a three-week high against the yen at 145.86 per dollar., just below the 24-year high of 145.90 hit before the Japanese government stepped in to prop it up three weeks ago. Subsequently, he traded stable at 145.73 units per dollar.
The euro was flat at $0.9702, after four days of losses that brought the currency closer to a 20-year low of $0.9528 hit on September 26.
Source: Ambito
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