The super dollar hit a month high, while the pound fell to a record lowi

Pressured by geopolitical risks and inflationary surprises in the country, the Turkish lira briefly fell to a record low of 18.85 in early trading after the strong earthquake that struck the region.

For his part, sterling fell 0.2% to $1.20245its lowest in a month, as traders keep an eye on UK growth data and statements by Bank of England officials on the pace of interest rate hikes.

The yen fell more than 1% against the US dollar after the Nikkei newspaper reported, citing anonymous government and ruling party sources, that Bank of Japan deputy governor Masayoshi Amamiya was being polled to be the next boss.

Amamiya is considered the “softest among the contenders, which is dashing hopes that the BOJ’s monetary policy normalization can progress under a new chief,” Saxo strategists said.

Why is the dollar index going up?

“Friday’s Nonfarm Payrolls number cemented the likelihood of another 25 basis point hike and reduced the chances of an eventual rate cut later in the year, sending equities lower and the greenback higher “said John Doyle, vice president of operations and trading at Monex USA.

“Overall, the dollar’s decline since the end of November was impressive. However, now it looks like it was a bit overdone,” Doyle said.

Data on Friday showed that US job growth accelerated sharply in January, while the unemployment rate hit its lowest level in 53 1/2 years (3.4%).pointing to a stubbornly tight labor market and a potential headache for the Federal Reserve in its fight against inflation.

The data came after the Federal Reserve raised rates 25 basis points on Wednesday. and said that there was a turning point in the fight against inflation, which had led investors to foresee a slowdown in the rate of increases in the future.

On Monday, US Treasury Secretary Janet Yellen said she saw a way to avoid a recession in the US, with inflation falling significantly and the economy strong, given the strength of the US job market.