Foto: Forbes.

The euro falls back below the dollar

The dollar rose on Thursday to levels not seen in decades against the euro and other currencies, boosted by the prospect of a tightened monetary policy in the United States to curb inflation.

The greenback gained 0.99% to settle at $0.9961 per euro, a record since late 2002, when markets wondered about the future of the single currency, in circulation since the beginning of that year.

The dollar also reached significant levels against other major currencies: the yen reached 139.39 per dollar, something not seen since the economic crisis of 1998.

The British pound fell to $1.1760, as in 2020, early in the COVID-19 pandemic.

“The dollar soars as markets bet on higher Fed rate hikes,” said Fiona Cincotta, an analyst at City Index.

The Federal Reserve seeks to contain inflation in the United States, which reached 9.1% last June, a record since November 1981.

“At the moment, the markets show a clear preference for the dollar, given the general context of geopolitical uncertainty, the pressures in Europe due to the energy supply situation and the expectations of interest rate hikes in the United States,” said Shaun Osborne. , chief currency strategist at Scotiabank.

The dollar also hit a 24-year high against the Japanese yen JPY=D3, as the Japanese central bank maintains a dovish stance that contrasts with aggressive moves by central banks around the world.

Associated Press/OnCuba.

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