Dollar Index Edges Lower as Investors Gauge Fed Rate Path

Jun 27, 2022

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By Scott Kanowsky 

Investing.com — The greenback eased again barely from a 20-year excessive reached earlier this month on Monday, following disappointing U.S. financial information that will dampen expectations for aggressive Federal Reserve charge hikes.

As of 02:38 AM EST (0638 GMT), the – which measures the buck in opposition to six rival currencies – was down 0.13% at 103.820. The index is buying and selling under a two-decade peak of 105.79 touched on June 15 after the Fed raised by 75 foundation factors in a bid to curb hovering .

Fears that these Fed actions may set off a worldwide financial downturn gave help to the buck and the perceived relative security of dollar-denominated property.

However on Friday, the ultimate June studying of the closely-watched College of Michigan index slumped to a report low, suggesting that Individuals have gotten extra pessimistic concerning the financial outlook amid a current spike in costs. The gloomy temper could lead some traders to reevaluate their predictions for potential

Fed charge rises

.

Main currencies in Europe elevated in opposition to the greenback. rose by 0.12% to $1.2278, whereas firmed barely by 0.05% to $1.0559 forward of a key European Central Financial institution discussion board in Portugal this week.

Elsewhere, is holding close to the flatline following an announcement by authorities in Shanghai that town had emerged victorious over a current COVID-19 outbreak.

In Russia, the was additionally regular at 53.40 per greenback after a deadline for Moscow to repay international debt handed, doubtlessly placing the nation on a path towards default.

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