Comprehensive up-to-date news coverage

HomeNewsBusinessThe dollar is strengthening against the yen as investors anticipate a Fed...

The dollar is strengthening against the yen as investors anticipate a Fed rate hike

Published on

Follow us on Google News for latest updates and information.

News Tech: The US dollar rose against the Japanese yen on Tuesday to a five-year high as investors bet that the fast-spreading Omicron variant coronavirus will limit the economic impact and the Federal Reserve will raise interest rates. The has been updated. On the second trading day of 2022, global markets continued Monday’s bull run. The dollar’s rise was aided by higher US Treasury yields, with US 10-year yields hitting their six-week high. By 1158 GMT, the Dollar Index rose 0.2% to 96.398, a new 13-day high.
Against the yen, the dollar rose 0.7% to 116.125, extending its overnight rally to its highest level since January 2017.

Usher said with so much policy tightening already priced in, it may be difficult for the dollar to rise further from its current strength, but “but given the near-term momentum, The dollar is likely to remain fairly strong in the first quarter as well,” said “especially as we see a rapid shift in asset purchases. “U.S. inflation could peak in January, but it will take some time for markets to concede”.

But this is just the biggest one-day rise in the dollar against the yen since November 2021. The euro fell 0.2% against the dollar to $1.1276. Investors believe Omicron poses less potential disruption to the global economy than previous variants, as studies show it has a lower hospitalization risk. Financial markets are fully priced in the first US rate hike by May and two more by the end of 2022. “As long as inflation persists, the dollar could remain strong,” said Colin Usher, senior economist at Mizuho Securities.

See also  The Solana Beach Chamber of Commerce's 10th Annual Business Expo is September 29th

Asian factory activity rebounded in December and businesses around the world have seen an increase in cases of the Omicron variant, but continued supply shortages and rising input costs have pushed some economic prospects down cloudy. Elsa Lignos, Global Head of FX Strategy at RBC Capital Markets, said: client note. Risk-sensitive currencies generally rose on the day.The  Australian dollar, seen as a liquid proxy for risk appetite, rose 0.1% to 0.71975 despite NSW hospitalizations surpassing record levels seen during the delta variant outbreak turned into dollars. The New Zealand dollar fell 0.2%.

Latest articles

According to the South Korean finance minister, further foreign exchange stabilization measures are imminent

News Tech: The finance minister of South Korea downplayed the necessity of a...

How to Check GPU Temperature on Windows 11

Hello everyone, in this article we will show you how Check GPU temperature in...

East Tennessee man arrested after breaking into Nashville store

News Tech: The Metro Nashville Police Department detained an East Tennessee man after...

Redeem Genshin Impact Codes Mobile, PC and PS4

Hello everyone, in this article we will tell you how to do it Redeem...

More like this

According to the South Korean finance minister, further foreign exchange stabilization measures are imminent

News Tech: The finance minister of South Korea downplayed the necessity of a...

How to Check GPU Temperature on Windows 11

Hello everyone, in this article we will show you how Check GPU temperature in...

East Tennessee man arrested after breaking into Nashville store

News Tech: The Metro Nashville Police Department detained an East Tennessee man after...

Redeem Genshin Impact Codes Mobile, PC and PS4

Hello everyone, in this article we will tell you how to do it Redeem...

The rupee has “held up very well” against the US dollar, according to Finance Minister Nirmala Sitharaman

News Tech: In contrast to other currencies against the US Dollar, the rupee...

How to Enable Dark Mode in Notepad in Windows 11

Hello everyone, in this article we will show you how Enable dark mode in...