Dollar marked a 5-week high on aggressive Fed ahead of Jackson Hole

The US dollar index marked a new five-week top on Monday after another Federal Reserve official reported the probability of continuous aggressive monetary tightening before the central bank’s Jackson Hole Symposium this week.

The euro collapsed to a new five-week channel after Russia announced a three-day termination to European gas supplies through the Nord Stream 1 pipeline at the end of this month, increasing the region’s energy crisis.

Yuan China descended to the lowest in almost two years after the central bank cut the key loan interest rates, adding a series of monetary easing steps aimed at sustaining a staggering economy from COVID-19 restrictions and the property crisis.

The US dollar index, which determines the currency against six rivals including Euro, rose to 108.26 for the first time since July 15 and was last up 0.074% at 108.23.

It followed the 2.33% increase last week – its best weekly rally since April 2020 – in the middle of the Choir of Fed’s policy maker which emphasized that more needs to be done to control inflation as high as several decades.

On Friday, Richmond’s Fed President, Thomas Barkin, said the “impulse” between the central bankers went to the fastest and fastest and loaded rates increases.

“Fed’s speaker has emphasized the message that more interest rates increase because the struggle against inflation has not been won,” fasting markets ahead of Jackson Hole on August 25-27, In the midst of increasing expectations for the president of the Fed, Jerome Powell, to emphasize that the tightening is “still far from the end,” wrote Rodrigo Catril, senior FX strategist at the National Australia Bank (OTC: NABZY) in a noted customer.

Currently, monetary markets indicate a 47.5% probability for another basis point increase of 75 on September 21, with a 52.5% possibility of a half-point increase.

The yields of the US Treasury increased above 3% in Tokyo trading on Monday for the first time since July 21.

Against the currency of Japan, which is extremely sensitive to the yields of the US, the dollar rose to 137.40 yen, the strongest from July 27.

Against Yuan off the coast, the dollar reached 6,8520, also the strongest level since September 2020.

Meanwhile, the euro has dropped up to $ 1,0026 for the first time since July 15 before negotiating 0.13% at $ 1,0027.

Sterling fell 0.23% to $ 1,1805, about five-weeks low on Friday of $ 1,17925.

The Australian and New Zealand dollars dropped near the lowest position in five weeks. Aussie changed slightly from $ 0.6876 after sliding to $ 0.68595 on Friday for the first time since July 19. The kiwi was flat at $ 0.6170 after decreasing $ 0.61675 at the end of last week, also a first since July 19.

Dollar marked a 5-week high on aggressive Fed ahead of Jackson Hole