NY foreign exchange market Rise to 100 units for the first time in two years, FRB hawkish attitude supports

In the New York foreign exchange market, the dollar index for the six major currencies has risen to 100 units for the first time in about two years. The rate of increase on a weekly basis is the highest in about a month, as the Federal Reserve is expected to move aggressively to respond to inflation.

The dollar index has risen to 100.19, the highest since May 2020. Trading at the end of the week was almost flat at 99.822, but has risen by about 1.3% since the beginning of the week.

The dollar index has risen over the past month as the euro is squeezed by the economic costs of the Ukrainian war and concerns over the French presidential election. Jonas Goltermann, senior market economist at Capital Economics, said, “In addition to the hawkish attitude towards quantitative tightening of the FRB and the risks of sanctions (against Russia) against Europe, the far-right candidate Marine Le Pen in the French presidential election polls. The pressure is on catching up with. “

The euro temporarily hit a low of $ 1.0837 for the first time in a month. It was down 0.3% to $ 1.0853 in late trading. It fell for 7 consecutive business days.

In the agenda of the March Board of Directors released by the European Central Bank (ECB) on the 7th, some officials are urging further action from the view that the conditions for rate hikes have been met or will soon be met. It turned out that it was.

However, Sean Osborne, chief foreign exchange strategist at Scotiabank (Toronto), said, “The Fed is expected to raise rates by 50 basis points (bp) at its May meeting, but the ECB will raise rates throughout the year. It does not exceed 50 bp. “

The dollar also rose against the yen. It hit a high of 124.67 yen for the first time in about a week. In the final transaction, it increased by 0.3% to 124.355 yen. It increased by 1.5% from the beginning of the week.

Dollar / Yen NY Closing Price 124.32 / 124.35

Opening price 124.09

High price 124.67

Low price 124.10

Euro / Dollar NY Closing Price 1.0876 / 1.0880

Open price 1.0885

High price 1.0887

Low price 1.0837

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