The US Dollar Index (DXY) measured against basket of six major currency on an average gained ground ahead of US Fed meet, hitting a fresh 20-year-peak, as traders appeared to be unanimously betting for a 75bps (basis percentage point) rate-hike in US Fed policy meet.
Growing prospects of a further hawkish stance from the US Fed following release of a 40-year-peak inflation data last month, unsettled money market across the globe, as S&P 500 entered into a bearish territory, while a majority of European bourses fell for a sixth straight session on Tuesday.
Major Asian indices extended declines as Japan’s Nikkei 225 alongside South Korea’s KOSPI dipped 1.18 per cent and 1.83 per cent respectively On top of that, after having been slumped more than 1.2 per cent on Tuesday, hitting a nearly two-year-low, the British currency seemed to be looking for a psychological handle around $1.20 region, as Scottish first Minister Nicola Sturgeon was quoted saying that she already shared plans of a new independence referendum, a move that the conservatives which are oppositions in Scottish parliament strongly opposed.
Dollar gains ground ahead of Fed meet
Citing statics, as of early morning US trading hours on Wednesday, euro is trading water at $1.0420 against its American counterpart, while Japanese Yen gains 0.75 per cent to 134.43 yen per Dollar.
Besides, British Pound is last trading 0.77 per cent higher to $1.2089 against the greenback, while safe-haven Swiss France adds 0.22 per cent against its American counterpart. Nevertheless, on Tuesday’s FX market wind-down, the US Dollar Index (DXY) measured against six major currencies on an average, added 0.28 per cent to 105.28, while British pound shed 1.2 per cent to $1.1986 against the greenback.
Japanese Yen bottomed again, losing as much as 0.56 per cent to 135.17 yen per dollar, while the bloc’s common currency Euro added 0.05 per cent to $1.0412 against its American counterpart. The Aussies fell 0.84 per cent to $0.6864 against their American peer, as recession frets loom, while the Kiwis curbed off 0.77 per cent to $0.6209.
Canadian Dollar lost 0.43 per cent to $1.2953 against the greenback, while safe-haven Swiss France faltered 0.43 per cent to $1.0015.