|
Global economic turmoil has put a rocket under the safe haven
dollar, pushing the dollar index that tracks the greenback
against six counterparts up more than 13% this year. It was last
up 0.3% on the day at 108.580.
The dollar strengthened more than 1% against the yen, pushing it
above 139 yen per dollar for the first time since 1998. It was
last up 1.1% at 138.92 yen.
The euro was hovering just above parity with the dollar - a day
after breaking below the key level for the first time in almost
two decades.
The single currency remained under pressure on Thursday, weighed
by downgraded official economic forecasts for the euro zone and
political strife in Italy.
The euro fell as much as 0.5% on the day and was last down 0.4%
at $1.00215.
Another hot set of U.S. inflation data on Wednesday and an
aggressive 100 basis point rate hike by the Bank of Canada on
the same day has stoked bets on swifter policy tightening by the
Fed, currency analysts said.
"The price action reflects building fears that the Fed will
strangle the life out of the U.S. recovery by responding more
aggressively to dampen upside inflation risks," analysts at MUFG
said in a note.
Traders have ramped up bets that the U.S. central bank could
raise rates by 100 basis points when it meets on July 26-27. A
hike of at least 75 basis points is seen as almost certain.
Sterling slipped 0.4% to $1.18505, as concerns about prospects
for the British economy dominated despite data on Wednesday
showing output unexpectedly grew in May.
(Reporting by Iain Withers, Additional reporting by Kevin
Buckland in Tokyo; Editing by Alex Richardson and Mark Heinrich)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
