The US dollar hit a 16-month high yesterday, driven by fears of global growth and inflation, while investors are waiting for new data on US consumer spending.
According to Reuters, the dollar was supported by data showing that US consumer prices rose at the fastest annual pace since 1990, casting doubt on the Federal Reserve’s optimism that inflationary pressures will remain volatile. Rates will then rise sooner than expected.
During yesterday’s trading, the dollar index, which measures the value of the green currency against six rival currencies, recorded 95.405, its highest level since July 2020.
The euro fell to a 16-month low against the US currency. It traded down 0.49 points at $ 1.1387 in recent trading.
Against the Swiss franc, the euro fell to its lowest level in 18 months, trading at a recent close of 1.0523 francs, down 0.15 percent.
In addition, the price of gold fell yesterday, retreating from its highest level in more than five months in the previous session, and cautious investors were predicting whether rising inflation would trigger a more aggressive response from central banks.
And gold in spot trading fell 0.3 percent to $ 1858.73 an ounce during yesterday’s trading, while the US gold futures were down 0.5 percent at $ 1859.30.
Among other precious metals, silver spot transactions fell 1.3 percent to $ 24.97 an ounce.
Platinum was down 1.2 percent at $ 1069.54 an ounce. Palladium was down 1.2 percent at $ 2084.50 an ounce.