The US dollar price peaked at a high of two and half weeks against the major peers. The swift inflation boosted the chances even more on Monday. Moreover, rumors about Federal Reserves hiking the interest rates.
It topped the yen with one and a half week peak. The Japanese currency weakened following the uncertain weekend elections. The ruling party seemed stronger.
The US Dollar Index changed a little and reached 94.166, around Friday’s peak of 94.302. It was the level that was not seen until now since October 13, 2021.
The US currency purchased yen at 114.175, profiting 0.13 per cent, from the last week’s end. Interestingly, it hit a high of 114.695 in multi-years. Moreover, if it goes above 114.41, it will be strongest since October 20, 2021.
Interestingly, the newly elected Japanese Prime Minister of the liberal Democratic Party, Fumio Kishida, held a robust majority during parliamentary elections and defied any expectations. He solidified his position. It allowed him to ramp up the stimulus.
Meanwhile, the monetary policy elsewhere and in the United States is focusing sharply this week. The open market committee of the Federal is all set to announce the tapering on stimulus on Tuesday.
In the core personal consumption expenditures of the government’s index, a 4.4 per cent surge would solidify the market’s expectations.
On the other hand, the Reserve Bank of Australia will be deciding its policy on Tuesday. However, markets are contesting the bank that the rates won’t rise until 2024.
The Australian dollar inched down to $0.7509 by 0.14 per cent. It is continuing its downward trend since it peaked the last week by reaching $0.75555.
Notably, Sterling lost its sheen and reached $1.36775, it had dipped earlier to $1.3663. It was for the first time since October mid.
However, the euro remained flat at $1.15575. It was close to Friday’s low of USD 1.1535. It was the weakest since October 13.