By 2:10 p.m. GMT (4:10 p.m. in Paris), the greenback was up 0.99% at $0.9961 per euro, a record since late 2002, when traders were still wondering about the future of the single currency put into circulation. in early 2002.
The dollar was hitting significant highs against other major currencies, with the yen sinking to 139.39 yen per dollar, a level not seen since the 1998 economic crisis.
The British pound melted to $1.1760 per pound, a low that had been reached in 2020, at the start of the Covid-19 pandemic, and before that, in 1985.
“The dollar soars as markets bet on further rate hikes from the Federal Reserve,” said Fiona Cincotta, an analyst at City Index.
rate hike
The Fed seeks to counteract inflation, which reached 9.1% annually in June in the United States, a new record since November 1981.
Some investors are betting that the Fed could follow the Bank of Canada’s lead and raise rates by a point.
The Canadian central bank’s action was not enough to strengthen the Canadian dollar against the wave of the greenback: it shed 1.53% to 1.3176 Canadian dollars for an American.
“In June, the Fed indicated that the July decision would be between 0.50 and 0.75 percentage points. The problem is that the Fed had indicated a hike of 0.50 points in June and opted for the 0.75 place points,” recalls Stephen Innes, an analyst at SPI AM.
San Francisco Fed President Mary Daly told the New York Times she “would probably support a 0.75” point hike, but also thought a one-point hike was also possible.
Source: BFM TV
