Today on Tuesday (July 5th), the us dollar opened at 105.20 and closed at 105.18 yesterday. So far, the highest has touched 105.21 and the lowest has been 105.09. Temporarily reported 105.14, down 0.04%. The British pound was temporarily reported at 1.2109, an increase of 0.06%; the Canadian dollar was temporarily reported at 0.7779, an increase of 0.11%.
In early Asian trading on July 5, Beijing time, the us dollar index fell slightly and is currently trading around 105.10. Fears of a global recession have kept the dollar higher, even as markets have tempered expectations for higher U.S. interest rates. Markets are now pricing in about an 85% chance of another 75 basis point rate hike by the Fed this month, with rates expected to hit 3.25% to 3.5% by the end of the year and a rate cut in 2023.
Fears of a global recession have kept the dollar higher, even as markets have tempered expectations for higher U.S. interest rates. Markets are now pricing in about an 85% chance of another 75 basis point rate hike this month, with rates expected to hit 3.25% to 3.5% by the end of the year, with a cut in 2023. The dollar index fell 0.03% to 105.02, not far from last month’s 20-year high of 105.790.
In a quiet start to the week, the dollar weakened against most major currencies , giving back Friday’s gains, ” said Shaun Osborne, chief currency strategist at Scotiabank .
Many market watchers expect the coming recession to be less painful than the last time inflation was this high during the 2007-2009 financial crisis and the back-to-back economic downturn of the 1980s. The problems facing the economy today are not as serious as they were in the past, they said.
While the recession may be mild, it may ultimately last longer than the eight-month downturn of 1990-1991 and 2001. That’s because inflation remains high, potentially preventing the Fed from rushing to reverse the recession.