The dollar rises to unprecedented levels against the euro

The dollar reached a record not seen since the end of 2002. It also appreciated in value against other major currencies in the world.

The dollar rose to levels not seen in decades against the euro and other currencies on Thursday, boosted by the prospect of monetary tightening in the United States to curb inflation.

On Thursday, the dollar took 0.99% to settle at $0.9961 per euro, a record since the end of 2002, when markets were still wondering about the future of the single currency, in circulation since the beginning of that year.

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The dollar also reached significant levels against other major currencies such as the yen, which reached 139.39 yen per dollar, a threshold not seen since the 1998 economic crisis.

Sterling fell to $1.17 a pound, as it did in 2020, early in the COVID-19 pandemic.

“The dollar is rising as markets bet on Fed rate hikes,” says Fiona Cincotta, analyst at City Index.

The Federal Reserve seeks to contain inflation in the United States, which reached 9.1% in June in one year, a record high since November 1981.

Photo/Pixabay

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