The U.S. dollar rate today is falling against the euro and pound sterling in trading on Tuesday, but is strengthening against the yen.

“The cessation of Russian gas supplies to Europe means that the economy of Germany and the entire eurozone will immediately be in recession,” said Liberum Capital analyst Joachim Klement, cited by Bloomberg.

The European Central Bank (ECB) is expected to raise key interest rates on Thursday at once by 75 basis points (b.p.), which has never happened before in its history.

Dollar rate as at today – what’s going on?

The pound is supported by expectations that Liz Truss, who is due to formally take over as Britain’s Prime Minister, on Tuesday, will take steps to reduce the country’s energy crisis. According to Bloomberg, she is set to unveil a plan to limit electricity and gas price rises for ordinary consumers, which will cost the country’s budget 130 billion pounds over the next 18 months.

“The pound is strengthening on optimism that the impact of rising energy prices on the UK economy will not be as severe as expected,” notes National Australia Bank (ASX:NAB) analyst Ray Attrill in Sydney. – The size of the potential budget support means that the Bank of England will be able to accelerate monetary tightening to contain inflationary pressures.”

The euro was up 025% against the dollar to $0.9954 from $0.9929 at the close of the previous session. The exchange rate of the European currency remains near its minimum since December 2002 because of the continuing fears that the energy crisis in Europe will further accelerate inflation and push the region’s economy into recession.

The pound sterling had gained 0.43% by this time to $1.1566 compared to $1.1517 at market close on Monday. The day before, the rate of the British national currency fell to its lowest level since 1985.

The U.S. currency rate rose 0.46% to 141.24 yen, its highest since August 1998, from 140.60 yen at Monday’s close.

The ICE-calculated index showing U.S. dollar dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) added 0.08% on Tuesday, while the broader WSJ Dollar Index lost 0.04%. 

Earlier we reported that analysts predicted a recession for Germany.