USD Hits Multiple Highs Against Major Currencies

Demand for the US dollar reached a 20-year high this week with the US Federal Reserve expected to hike interest rates at a more aggressive pace.

Concerns over a global economic slowdown due to rising interest rates, high inflation and declining growth forecasts have fueled safe-haven demand for the US dollar.

Last week, the US Consumer Price Index climbed more than expected, indicating persistent inflation despite the Federal Reserve increasing interest rates by half a percentage point in May.

Following the release of this data, the US Dollar Index, which measures the value of the US dollar relative to a basket of major currencies, rose for four consecutive days.

This week, the US dollar reached several market-rate highs:

• USD/EUR climbed to a 4-week high of €0.9617
• USD/GBP climbed to a 2-year high of £0.8378
• USD/NZD climbed to a 2-year high of NZ$1.6137
• USD/AUD climbed to a 4-week high of AU$1.4595
• USD/CAD climbed to a 4-week high of CA$1.2975
• The US Dollar Index reached a 20-year high of 105.652

Source:

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