Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

U.S. dollar climbs from one-week low as Fed's Powell backs hefty rate hike

Economy Apr 21, 2022 04:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: U.S. dollar banknotes are displayed in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration 2/2
 
DBKGn
+1.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CBKG
+1.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNY
-0.18%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
+0.06%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - The U.S. dollar rose from a one-week low on Thursday after Federal Reserve Chair Jerome Powell all but confirmed a half a percentage-point tightening at the policy meeting next month, including consecutive rate increases this year.

The dollar index, which gauges the strength of the currency versus a basket of rivals, gained 0.2% to 100.53, after trading lower for most of the session. The index has advanced 2.3% so far this month, on pace for its best monthly gain since June 2021.

Powell said a half-point interest rate increase will be "on the table" when the Fed meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year.

Fed funds futures have started to price in bets of three straight 50 basis-point hikes starting with next month's policy meeting, with an implied rate of about 2.71% in December.

"Rising fears over an increasingly aggressive Fed policy posture weighed heavily on Treasuries, especially at the short end, and the pop in rates knocked Wall Street lower," Action Economics said in its blog after Powell's comments. "However, the dollar was the beneficiary."

The euro slid from a more than one-week high after European Central Bank President Christine Lagarde said the ECB may need to cut its growth outlook further as the fallout from Russia's invasion of Ukraine weighs on households and businesses.

Lagarde's comments were in contrast to hawkish comments from ECB officials who seemed to suggest European Central Bank officials raised bets that euro zone interest rates will rise soon.

Joachim Nagel, president of Germany's Bundesbank, joined a chorus of policymakers in saying the ECB could raise interest rates at the start of the third quarter..

Money markets, which had eased rate hike bets following last Thursday's ECB meeting, were now pricing in a more than 20 basis-point (bps) rise by July and over nearly 80 bps of tightening by year-end.

That would take benchmark interest rates above zero for the first time since 2013.

European political news was also supportive, with French President Emmanuel Macron clearing a major hurdle ahead of Sunday's runoff election with a combative performance in a TV debate against far-right candidate Marine Le Pen.

With the deciding vote just four days away, some 59% of viewers found Macron to have been the most convincing in the debate, according to a snap poll for BFM TV, suggesting Macron's 10 percentage point lead in the polls was not under threat.

In late trading, the euro fell 0.2% to $1.0832, after hitting $1.0936, its highest level since April 11.

The dollar rose 0.3% against the yen to 128.30.

Against the Swiss franc, the dollar rose 0.5% to 0.9532 francs.

========================================================

Currency bid prices at 4:07PM (2007 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 100.5700 100.3400 +0.24% 5.129% +100.6300 +99.8160

Euro/Dollar $1.0837 $1.0855 -0.15% -4.67% +$1.0936 +$1.0824

Dollar/Yen 128.2600 127.8850 +0.30% +11.42% +128.7000 +127.8200

Euro/Yen 139.00 138.81 +0.14% +6.66% +140.0000 +138.7400

Dollar/Swiss 0.9529 0.9484 +0.46% +4.45% +0.9553 +0.9458

Sterling/Dollar $1.3025 $1.3069 -0.30% -3.66% +$1.3090 +$1.3023

Dollar/Canadian 1.2577 1.2495 +0.66% -0.53% +1.2590 +1.2459

Aussie/Dollar $0.7372 $0.7452 -1.05% +1.43% +$0.7458 +$0.7365

Euro/Swiss 1.0327 1.0291 +0.35% -0.41% +1.0371 +1.0289

Euro/Sterling 0.8318 0.8303 +0.18% -0.98% +0.8367 +0.8297

NZ $0.6733 $0.6805 -1.04% -1.61% +$0.6809 +$0.6727

Dollar/Dollar

Dollar/Norway 8.8915 8.8155 +0.85% +0.91% +8.8955 +8.7630

Euro/Norway 9.6360 9.5451 +0.95% -3.76% +9.6451 +9.5434

Dollar/Sweden 9.5112 9.4366 +0.69% +5.47% +9.5217 +9.3698

Euro/Sweden 10.3083 10.2378 +0.69% +0.73% +10.3187 +10.2356

U.S. dollar climbs from one-week low as Fed's Powell backs hefty rate hike
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Meself Meself
Meself Meself Apr 21, 2022 3:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
macrony optimism , what a joke France has lost another war , its culture being destroyed
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email