Home / Economic Report / Daily Economic Reports / The US Dollar Near Its Highest Level in a Year

The US Dollar Near Its Highest Level in a Year

The US dollar approached one-year highs against major currencies on Thursday amid expectations that the Federal Reserve will gradually scale back stimulus measures from November, while the commodity-linked Australian dollar benefited from higher iron ore prices.

The dollar, which is considered a safe haven, made significant gains in the last two trading sessions amid fears that the Federal Reserve will withdraw its support for the economy at a time when global growth is slowing and inflation is rising.

And contributed to the rise in Treasury yields to support the dollar.

The dollar index, which measures the performance of the US currency against six major currencies, recorded 94.327, little changed from its level on Wednesday, when it reached 94.435 for the first time since late September last year.

The 10-year US Treasury yield was at 1.5341%, near its highest level since mid-June, which hit 1.5670% on Tuesday.

The dollar recorded 111.97 yen, unchanged from its price yesterday, which reached 112.05 yen for the first time since February 2020.

The yen is on track for its worst monthly performance since March.

The euro price settled at 1.15995 dollars, near its lowest level in 14 months of 1.15895 dollars, which it recorded on Wednesday.

The Australian dollar rose 0.5% to $0.7206 after falling 0.9% overnight as iron ore prices rose ahead of a holiday in China, Australia’s largest trading partner.

The price of the pound sterling rose 0.1% to 1.34357 dollars but remained near its lowest level in nine months of 1.3412 dollars, which was recorded last night, amid fears of a rise in natural gas prices.

In the cryptocurrency market, the price of Bitcoin increased by 5% to $43,567 and the price of Ether increased by 6.4% to $3,034.09.

The two currencies are down between 20% and 27% from their September peaks.

Check Also

US Inflation Edges Higher in October, Keeping Federal Reserve Focused Ahead of Key Meeting

Headline inflation in the United States rose in October as anticipated, according to the Labor …