The U.S dollar climbs to its highest level since May 14, 2021.
Fears of rising global tensions between Western countries and Russia drive the U.S dollar to a new high against Euro. However, the American currency remains threatened due to recent collaboration between Russia and China.
The Kremlin and Beijing agreed to conduct all oil and gas transactions in yuan and ruble rather than U.S dollars.
The White House administration describes that as an obstacle and a threat to European countries and the U.S economy’s stability. In the next two weeks, the White House is expected to announce its economic sanctions package. The global tension has become a currency war to see which currency falls ad strand at the end of the day.
According to Russian Prime Minister Lavrov, Russia will work on using the Chinese yuan in its transactions with China. A statement that the Chinese government has declined to decline, and instead supported it.
America was hoping that China would help it to end the conflict and condemned Vladimir Putin’s so-called “crime wars,” as Biden described it. Novak added that he trusts that European countries will finally accept paying for Russian gas in rubles instead of USD or euros. As Russia’s president, Putin, in his latest statements says, if the non-friendly countries are not willing to pay in rubles, we will export our gas and oil to countries that really need it.
It’s best to make a reminder that oil prices and gas have increased massively and caused a peak in inflation since late February.
Despite all of the concerns and threats, the US dollar gained ground this week against the Euro and the Chinese yuan. The U.S dollar is currently at its highest level since March 14, 2022.
The USD index rose to 100.52 today, which is estimated to be the highest level in the last 2 years. Now its on an up-moving momentum and is expected to hit 103 in the next few weeks.
Since July, the U.S dollar has skyrocketed from 89 to hit now 100.52
The U.S dollar is beating all expectations since the March 1st interest rate hike by the Federal Reserve. In Europe, the central banks will increase their interest rates to bring the euro back to its normal level.
For now, the USD/EURO is at a level of 0.8. Recently, the European central banks tried to change the two peer levels to 1.12, but they failed due to several factors, including inflation and supply shortages.
Today, Janet Yellen, the Treasury Secretary, declared the U.S dollar will last a long time and won’t crash any time soon. The 10-year U.S Treasury declined today as well, and the stock market opened in a strong position after yesterday’s gains.
The S&P rose by 0.76%, the Nasdaq index climbed by 1.52%, and the Dow Jones industrials increased by 0.65%. Crude oil prices increased for the third day on a raw basis. Crude oil rose by 3.30% to $103.90 per barrel.
Still, in terms of the future price of the U.S dollar, experts believe that it will increase in the next few months. The Federal Reserve is sticking to its tightening policy, and the next meeting will reveal how much the central banks’ interest rates will rise.