Dollar falls below 20-year high as euro rises by ECB bets According to Reuters

© Reuters. FILE PHOTO: The British pound and US dollar banknotes seen in this illustration were taken on January 6, 2020. REUTERS / Dado Ruvic / Illustration

By Kevin Buckland

TOKYO (Reuters) – The dollar weakened on Tuesday after bouncing back from two-decade highs against a resurgent euro major.

Conversion tables for the two currencies as traders start ramping up bets for a super-massive 75-point interest rate hike by the European Central Bank, while odds by the Federal Reserve United States of America is one.

The exchange rate – a measure of the greenback against a basket of six currencies, with the euro having the heaviest weight – stood at 108.65 at the start of the Asian day, after falling back from 109.48 overnight, a level not seen since September 2002.

The euro rose 0.08% to $1,00045, extending Monday’s 0.32% gain – its biggest in nearly three weeks – after failing to hold above parity over the past week.

“The euro has found near-par stability with help from reports that a 75bp rally is possible at the ECB meeting in September,” said Sean Callow, a currency strategist at Westpac in Sydney. 9″.

“But euro yields remain flat and the deepening gas crisis in Europe means stronger ECB price hikes will only deepen recession. We expect to print lows 20 years in the coming days, with 0.98 the next obvious target.”

Traders see 50% better odds on the ECB’s 75 bps move on September 8 after a parade of ECB speakers at the Fed’s annual symposium in Jackson Hole backed cases skyrocketed.

By comparison, bets for the Fed’s 75 bps rise on September 21, while higher at 70%, have dropped from 75% on Monday.

The monthly US jobs data due on Friday will be closely watched for more clues on the rate outlook.

The euro was also supported by lower European gas prices after German Economy Minister Robert Habbeck said the country was filling up gas storage facilities faster than expected.

The dollar fell 0.17% to 138.505 yen, after rising to 139 for the first time overnight since mid-July.

The British pound added 0.1% to $1.17175, recovering from a near 2-1/2 year low of $1.16495 hit on Monday.

The move was 0.04% higher to $0.69125, up from $0.6481 in the previous session, a six-week low.

Source link


News 7D: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button