He super dollar hits multi-month highs against most of the major currencies this Wednesday, March 8, one day after the chairman of the Federal Reserve, Jerome Powellanticipate that interest rates may have to rise faster and higher than expected to curb stubborn inflation.
Rate hikes benefit the dollar as its performance improves and investors seek safety as global stocks and risky assets tumble.
He Greenback hits two-month high against the euro, to $1.0539, extending the 1.3% gain from the day before. The pound sterling, the Swedish and Norwegian kroner, the yuan and the Canadian, Australian and New Zealand dollars were at multi-month lows.
The The US currency was also above its 200-day moving average against its Japanese counterpart. for the first time this year, appreciating 0.5% to a nearly three-month high of 137.9 yen.
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On Tuesday, Powell told lawmakers on Capitol Hill that the latest economic data from the United States was stronger than expected and that, therefore, the speed and size of future hikes may also have to increasewhich triggered short-term rate expectations.
“The dollar will have a short-term tailwind in the coming weeks due to a more hawkish Fed,” he said. Dane Cékov, from Nordea. “We see the Fed moving up to 6% in the coming months and it could move faster now after Powell’s comments.”
Powell will speak again this Wednesday afternoon in a day in which Statements are also expected from the director of the European Central Bank, Christine Lagarde, and Swati Dhingra, a member of the Bank of England committee.
The dollar index climbs 0.2%, to a maximum of more than three months of 105.88 unitsafter rising 1.3% on Tuesday, its biggest daily advance since September 23.
The sterling falls slightly to 1.1811 dollars, its minimum since the end of November, and the yuan the national session ended 6.9706 units per dollarits weakest close since December 29, 2022.
Source: Ambito
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