The path of US interest and Russian gas cuts dominate the currency market

Despite the markets absorbing the US interest rate hike this week, increasing uncertainty about its future path kept the dollar price below its recently reached 20-year high on Tuesday. In contrast, the recent Russian gas supply cuts kept the euro under great pressure.

Later on Tuesday, the Federal Reserve begins its two-day meeting and is expected to raise rates by 75 basis points. Still, many traders question whether slowing growth could prompt the central bank to shift its attention from inflation, which could point to a slower rate hike at meetings. coming.

By 0830 GMT, the dollar was down 2.8 percent from its high of 109.29 two weeks ago on the dollar index, which measures its value against a basket of major currencies. The dollar settled during the day at 106.5, while it rose against the euro to 1.0219 dollars.

The euro remained affected by the uncertainty surrounding energy security in Europe after Russia said that its flows of gas to Germany via the Nord Stream 1 pipeline would drop to 33 million cubic meters per day from Wednesday, which is half the current level of flows already reduced by 40 percent from usual energy.

But the reaction of the single currency to this news has been limited so far, although this increases the possibilities of rationing fuel distribution in Europe and the risks of economic recession.

Cryptocurrencies reversed their gains last week, with Bitcoin hitting $21,100, its lowest since July 18, and Ether at $1,421, the lowest since July 18.