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On Thursday, the dollar, driven by the U.S. Federal Reserve (Fed) rate hike, reached new highs against other major currencies.
Yesterday, at around 15:00 GMT (17:00 in Paris), the greenback was back on the rise against the euro. It gained 0.24% to 0.9814 dollar, after climbing to 0.9809 dollar: a peak since 2002.
For its part, the Fed raised rates by 0.75 percentage points, the third consecutive increase of this magnitude.
Fed Chairman Jerome Powell said he was determined to keep up the rapid pace of rate hikes to fight inflation.
What about other currencies?
In Japan, the central bank maintained its monetary policy. But the Japanese government said it intervened in the foreign exchange market to support the yen.
The Japanese currency climbed 1.33% to 142.14 yen to the dollar yesterday, after dropping below the symbolic 145 yen mark for the first time since 1998.
Switzerland aligned itself with the Fed, raising its rate by 0.75 points. As a result, the Swiss franc fell 1.59% to 0.9821 Swiss francs to the dollar.
The Bank of England raised its rate by 0.5 points.
The Fed is willing to tolerate a recession as the price of getting inflation under control. The only problem is that this approach forces “other central banks to try to keep pace in order to contain the inflationary shock caused by the dollar’s surge against their own currencies” warns Michael Hewson, chief analyst at CMC Markets.
Read also>CAC 40: When the stock market falls, Fed rates rise
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On Thursday, the dollar, driven by the U.S. Federal Reserve (Fed) rate hike, reached new highs against other major currencies.
Yesterday, at around 15:00 GMT (17:00 in Paris), the greenback was back on the rise against the euro. It gained 0.24% to 0.9814 dollar, after climbing to 0.9809 dollar: a peak since 2002.
For its part, the Fed raised rates by 0.75 percentage points, the third consecutive increase of this magnitude.
Fed Chairman Jerome Powell said he was determined to keep up the rapid pace of rate hikes to fight inflation.
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On Thursday, the dollar, driven by the U.S. Federal Reserve (Fed) rate hike, reached new highs against other major currencies.
Yesterday, at around 15:00 GMT (17:00 in Paris), the greenback was back on the rise against the euro. It gained 0.24% to 0.9814 dollar, after climbing to 0.9809 dollar: a peak since 2002.
For its part, the Fed raised rates by 0.75 percentage points, the third consecutive increase of this magnitude.
Fed Chairman Jerome Powell said he was determined to keep up the rapid pace of rate hikes to fight inflation.
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