The US Dollar Index (DXY) measured against a basket of six major currencies on an average had ascended further on Monday, as British Pound bottomed to a record low against the greenback and South African Rand fell to a 28-months low.
However, as of Tuesday’s early-morning US trading hour, US Dollar Index (DXY) edges slightly lower to 113.45. In the matter of the fact, latest maverick upswing in US Dollar came forth as an ultra-hawkish US Fed appears to be gambling on an aggressive rate-hike cycle in expense of a contraction which might lead to a recession as early as by 2023, suggested analysts.
On top of that, as global FX market had witnessed another day of bloodbath with euro and pound seemed to be floating on a red sea of Nile, a number of emerging market currencies including South African Rand had fallen to their multi-month lows.
In tandem, as British Pound had fallen as much as 4.9 per cent during Asia-Pacific trading hour to an all-time low of $1.0327 against its American peer, analysts were quoted saying that investors turned their tails amid frets that the new UK mini-budget might severely disengage the economy.
Dollar extends gain as Pound hit record low Citing statistics, in the day’s FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies on an average climbed as much as 1.03 per cent to 114.04, while the bloc’s common currency euro dipped 0.85 per cent to $0.9608, closing out the session at a new record low.
Besides, the safe-haven Swiss Franc shrugged off as much as 1.19 per cent to $0.9931 against its American peer, while Japanese Yen shed 0.94 per cent to 144.70 yen per Dollar. Besides, risk-sensitive loonies like of Aussies and kiwis dropped 1.15 per cent and 1.90 per cent to $0.6454 and $0.5632, respectively, while as crude oil futures’ prices pummelled over 2 per cent to a nine-month low, Canadian Dollar shed 1.10 per cent to $1.3737 against the greenback.
British pound ended the day at $1.0681 against its American peer, while South African Rand retreated to a 28-months low of 18.06 Rand versus Dollar.