© Reuters Forex Europe: US dollar returns to 20-year high, IMF names UK fiscal policy
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Investing.com – The dollar rose again to a 20-year high in European morning trading on Wednesday as more aggressive comments from Federal Reserve officials and firmer US bond yields added to recession fears.
At 4:19 pm Beijing time (4:19 am ET), the greenback, which measures the greenback’s performance against six major trade-weighted currencies, was up 0.30% to 114.388 and 0.18 % to 114.31 after rising to 114.722 earlier. The benchmark US Treasury yield was at 3.990 percent after rising to 4.019 percent earlier.
He made it clear that containing the surge in inflation is currently the most important task and will continue to drastically raise interest rates, even at the cost of a recession.
On Tuesday (28) Chicago Fed Chairman Evans (Charles Evans), St. Louis Bullard Fed Chairman (James Bullard) and Minneapolis Fed Chairman Kashkari (Neel Kashkari) reinforced the above stance. Bullard said rates need to stay high “for a while to make sure inflation is under control.”
Hawkish comments from Fed officials pushed the benchmark US Treasury yield above 4% for the first time since 2010, and it is now back to 3.982%.
It fell 0.50% to 1.0678, still close to an all-time low as the new UK government’s new aggressive tax cut plan continued to weigh on the market.
In addition, the International Monetary Fund (IMF) publicly criticized the UK’s economic policy on Tuesday, stating: “Given the growing inflationary pressures in many countries such as the UK, we do not recommend a large-scale, non-targeted fiscal plan at this time. , because taxation is important that policy is not contrary to monetary policy “.
After the pound plunged, Bank of England chief economist Huw Pill also said Tuesday that the central bank could raise interest rates “significantly” at its November meeting.
It fell 0.19% to 0.9574, not far from its 20-year low of 0.9528, as the growing energy crisis weighed on the euro.
Gazprom (MCX 🙂 said on Tuesday it could call for sanctions against Ukrainian pipeline operator Naftogaz Ukrainy, a move that would end nearly all of Russia’s remaining gas supplies to the European Union.
Previously, two Russian gas pipelines had severe leaks, and the outside world speculated that the leak was man-made.
Furthermore, the data showed an all-time low, falling to -42.5 from -36.8 in September, well below market expectations of -39.0.
It fell 0.09% to 144.63. After Japan intervened in the exchange rate last week, the US-Japan exchange rate fluctuated around 145.
Risk-sensitive sentiment fell 0.62% to 0.6394, near its lowest level since May 2020, while it rose 0.95% to 7.2459 as the yuan fell to its lowest level since the financial crisis. of 2008.
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Compilation: Liu Chuan
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