The dollar hit a 24-year high against the yen and a 37-year high against the pound on Wednesday, as Japanese monetary policy and economic problems in Europe contrasted with the relatively strong US economy and the Federal Reserve determined to cut inflation to 2%. targeting.
The US currency rose to 144.99 yen for the first time since August 1998. It is now one step away from its 1998 high of 147.43. The dollar was last up 0.9 percent to 144.09 yen.
Against the British pound, it reached $1.1407, the lowest since 1985, and was last down 0.1% at $1.1509.
“Increasingly, it’s becoming a really growth story and a crisis story,” said Eric Nelson, macro strategist, Wells Fargo. “We have China continuing to have a zero-COVID policy, and if anything, we keep doubling down by shutting down more cities.” .
He added: “Europe and the UK appear to be heading into two difficult months, with the potential for recessions for both economies. On the other hand, the US appears to be holding out.”
The euro fell below 99 cents on Wednesday, after falling to $0.9864 on Tuesday, its lowest level since October 2002. The single European currency was last up 0.8% at $0.9985.
The European Central Bank is seen as likely to raise interest rates by 75 basis points on Thursday, but those expectations did little to support the euro, given the turbulent European economy and Russia’s decision to keep the euro closed indefinitely. 1 stream gas pipeline.
By contrast, Tuesday’s report showed that the US service sector unexpectedly rebounded last month, reinforcing views that the economy is not in a recession.
At current USD/JPY levels, there is also speculation that Japan may intervene to support the currency.
Connect with Voice of America! Subscribe to our channel Youtube turn on notifications; Or follow us on social networks: FacebookAnd the Twitter And the Instagram.
“Creator. Devoted pop culture specialist. Certified web fanatic. Unapologetic coffee lover.”