In Science and Space: The dollar surged to its highest level in almost two years on Wednesday after jumping on more hawkish comments from a senior US Federal Reserve official last night, while the euro rallied on the back of new Western sanctions against Russia. Blown by the outlook. The Dollar Index, which measures the US dollar against his six peers, rose 0.15% before open to 99.620, its highest since May 2020.
The index rose 0.5% on Tuesday after Fed President Lael Brainard said he expected a combination of rate hikes and a rapid economy. Balance sheet drains will see US monetary policy move to a “more neutral stance” later this year, with further tightening if necessary. Brainerd is usually considered a rather low-key politician.
As for the dollar, given its weight in the index, it is difficult to separate it from the euro-dollar exchange rate, and the euro has not been favored by recent talks of an extension of sanctions, which is bad news for the eurozone economy.” The euro hit its lowest level in almost a month at $1.0894 on Wednesday. The proposed European Union sanctions would ban Russian coal purchases and ban Russian ships from entering her EU ports.