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.
Current yuan to dollar exchange rate has fallen to its lowest since 2008
Current yuan to dollar exchange rate dropped to 7.2256 yuan per dollar. This is the lowest level in 14 years, reports RBC. The offshore yuan-dollar exchange rate has fallen to a record low of 7.2577 yuan per dollar since China began trading the currency in 2010.
The People’s Bank of China sets reference exchange rates for the yuan daily. On Tuesday it set the yuan-dollar exchange rate at 7.0722 yuan. This was the lowest since July 2020. The exchange rate of the yuan, which is traded in mainland China, is controlled by the NBK and can deviate from the reference rate by no more than 2 percent in either direction during the day. In Hong Kong and Macau, the CNH offshore exchange rate to foreign currencies may vary without restrictions.
The Chinese yuan to dollar exchange rate today fell to its weakest level since the 2008 global financial crisis amid persistent dollar appreciation against major currencies and fears that China is weakening support for its currency.
The yuan has fallen more than 4 percent against the dollar this month and may post its worst performance in a year since 1994, the publication estimated. China’s currency is under pressure as the country’s monetary policy diverges from U.S. policy, leading to capital outflows.
Earlier we reported on history low for the pound British.
History low for the pound British
Today we can observe history low for the British pound. The British pound has fallen in the international forex market by almost 5% against the dollar – to a record low of $1.0384. The pound fell 0.85% against the U.S. dollar to $1.0762.
The British currency depreciated after the Ministry of Finance of the country promised to continue cutting taxes, raising fears that the new policy will lead to a sharp rise in inflation and the national debt, Bloomberg wrote. The pound’s collapse was the biggest intraday drop since March 2020, when markets were panicked by the start of the COVID-19 pandemic, the publication estimated.
The sell-off in the currency began on Friday, after the government announced a plan for a massive tax cut in the U.K., which will affect individuals and businesses and increase the budget deficit.
“History low for the British pound shows that markets do not trust the UK,” said Saxo Capital Markets strategist Jessica Amir. – The pound is one step away from parity with the dollar, and things will only get worse from here.”
The British currency has already fallen 20% against the dollar this year. According to Bloomberg, the fall in the British pound sterling in 2022 surpassed the collapse seen after the vote to leave the European Union (Brexit) in 2016. At that time, the U.K. currency depreciated by about 16% in one year.
Earlier we reported that the dollar is getting cheaper against most currencies after rising the day before.
The dollar is getting cheaper against most currencies after rising the day before. Global money is getting cheaper
The dollar is getting cheaper against the euro, the yen and the pound sterling today after a solid rise in the previous session on the background of the fact that all the world’s money’s getting cheaper.
The dollar is correcting because investors are trying to fix profits after its significant strengthening, said Trading Economics. Experts believe that the U.S. currency will continue to strengthen on the background of a rapid tightening of monetary policy by the Federal Reserve (FRS). Also, the dollar is supported by reducing the appetite for risk in world markets.
Further growth in volatility in the financial markets will strengthen the dollar because of its status as a “safe haven” currency, said an analyst on the currency market, CBA Carol Kong.
The euro rose 0.53% to $0.9660 against the dollar, up from $0.9609 at the close of the previous session. The day before, European currencies were cheaper against the dollar by 0.8%.
The pound rose by 1.07% to $1.0803 during the trading session, compared to $1.0689 the day before. The exchange rate of the dollar against yen decreased by 0.30% – down to 144.31 yen against 144.75 yen by the end of the previous session. On Monday the American currency grew by 1.5% against the pound and by 1% against the yen.
The index, calculated by ICE, which shows the dollar trend against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and the Swedish krone), was losing 0.5% during trading. The day before, the indicator had updated its 20-year high.
Earlier we reported that the Nasdaq is on the plus side amid signs that growth stocks are recovering.
- Coronavirus10 months ago
Biden administration still seeking agreement from Mexico on return of asylum seekers
- Stock Markets6 months ago
WeLion Cooperates with Nio to Produce Semi-Solid Battery
- Cryptocurrency10 months ago
Arvalex Token Launches It’s PreSale to Shake Up The Metaverse
- Forex2 months ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Cryptocurrency10 months ago
Crypto & NFT Influencer Marketing: Hire an Agency or Do It Yourself?
- Economy10 months ago
Analysis-Europe’s big payday remains elusive even as inflation surges
- Cryptocurrency11 months ago
NFT World Records: CryptoDragons Sold Out 500 Eggs in Its Primary Pre-Sale in Тhe Тwinkling of аn Еye!
- Cryptocurrency9 months ago
In the Wilder World, Staking and Liquidity Mining Have Arrived